One-third of Americans unable to repay credit card debt

A recent survey found that approximately one-third of Americans do not have enough in savings to repay their credit card debt.

For many Americans, finding a way to make ends meet is a constant struggle. Often, as a temporary solution, people will charge items to a credit card that they know they will be unable to pay off. In those cases, interest rates can quickly lead to seemingly insurmountable credit card debt.

According to a recent study conducted by Bankrate.com, approximately 30 percent of adults in the United States owe more in credit card debt than they have in their emergency savings. In other words, about one-third of Americans do not have sufficient funds to pay their credit card debt.

In addition to having large credit card debt, statistics show that Americans are not saving as much these days as they have in the past. Based on data from the U.S. Department of Commerce, the savings rate in the U.S. was just 4.2 percent in November 2013.

According to a survey conducted by the Consumer Federation of America, Americans are not satisfied with the amount of money they are able to save. Of those questioned, 63 percent reported that they were making "fair" or "no" progress when it came to meeting their goals for personal savings.

Eliminate credit card debt by filing for bankruptcy

When someone feels weighed down by credit card debt, it is important to understand that there are options available to eliminate the debt and start over. For many people, filing for Chapter 7 bankruptcy is an appropriate choice when credit card debt becomes impossible to repay.

If an individual qualifies for Chapter 7 bankruptcy - determined through a means test - unsecured debt, such as credit card debt, may be discharged. In other words, the individual would no longer be required to repay the credit card debt. In addition, once bankruptcy has been filed, any debt collectors attempting to collect on the credit card debt will be unable to continue contacting the individual. The automatic stay prevents debt collectors from making contact following the bankruptcy filing.

Credit card debt may also be discharged through Chapter 13 bankruptcy. Chapter 13 bankruptcy may be appropriate for some people, particularly those looking to prevent their home from going into foreclosure.

If you are overwhelmed by credit card debt and are not sure how to proceed, you should take the time to consult with a skilled bankruptcy attorney. A knowledgeable lawyer will be able to explain your options and help you get a fresh start.

Keywords: credit card debt, Chapter 7 bankruptcy, Chapter 13 bankruptcy