How Much Debt is Too Much?

Most of us carry around debt and it's part of how the American economy functions. Credit is leveraged so that we can buy a home, a car and all of the big ticket items we've become accustomed to. At some point though, the cost of carrying around all that debt, especially high interest credit card debt, can become too much to handle.

So it begs the question. How Much is Too Much?

Should Credit Card Interest Rates be Illegal?

Did you ever notice that the interest rates credit card companies charge often border on what a loan shark charge? It's no wonder people turn to bankruptcy. There is no way most of us could pay off twenty or thirty thousand dollars of credit card debt at an interest rate approaching thirty percent.

I Want to File Bankruptcy on My Credit Cards But Not My House

Somehow many people have come to believe that you can file for bankruptcy and choose which debts and property are included. This is not how it works. If you are going to file for bankruptcy you will need to list out ALL of your debts as well as ALL of your assets in your petition and associated bankruptcy schedules.

Does that mean all the property listed will be liquidated? Absolutely not.

Why Your Credit Card Company Hates Bankruptcy Law

It's no surprise that most people at one point or another find themselves stuck with a lot of credit card debt. Americans in general have embraced the use of credit cards as a way to buy products and services that they otherwise would not be able to afford.

Credit cards serve a very important purpose. They allow anyone to leverage borrowed money to make large purchases. The problem though, is that while convenient, credit card usage also poses the real risk of getting consumers into an overextended credit situation. It's far to easy to simply whip out a credit card for everyday purchases and worry about the bill later. It doesn't take very long before all those little purchases to add up to a significant amount of money.