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How credit card debt affects your bankruptcy means test

Filing for bankruptcy in Maryland requires passing a means test. This test helps the court decide if you qualify for Chapter 7 bankruptcy. It compares your income to the median income in Maryland and examines at your regular expenses.  Credit card debt plays a key role in this calculation. Understanding how your credit card debt may affect your eligibility will help you decide if bankruptcy is right for you. What is the bankruptcy means test? The means test has two main parts. The first part

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How does wage garnishment work for credit card debt in Maryland?

Falling behind on credit card payments in Maryland can lead to serious financial consequences, including wage garnishment. Creditors have the legal ability to recover unpaid balances through court-ordered deductions from your paycheck. What wage garnishment means in Maryland Wage garnishment refers to a legal process where a creditor collects a portion of your wages to satisfy a debt. However, creditors cannot initiate this action without first obtaining a court judgment against you. After a successful lawsuit, the creditor may request a garnishment order. State law

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When credit card debt becomes non-dischargeable in bankruptcy

Credit card debt is often one of the primary reasons people consider filing for bankruptcy. Filing for bankruptcy gives you the chance to rebuild your financial situation, and it may even discharge much of your debt. While bankruptcy often discharges many forms of credit card debt, there are situations where the court may deem this type of debt non-dischargeable. Understanding these scenarios can help you prepare for the challenges of the bankruptcy process. When there is suspicion of fraud One of the main reasons credit

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How are retirees managing credit card debt amidst rising costs?

Retirees are facing growing challenges as living costs continue to rise, and many are struggling with escalating credit card debt.  Retirees must find ways to manage this debt while navigating the pressures of fixed incomes and increasing expenses. Budgeting and cutting expenses One of the ways retirees are managing their credit card debt is by creating stricter budgets. With rising costs for essentials like food, healthcare, and housing, many retirees are cutting non-essential expenses to make ends meet. This may include downsizing to smaller homes,

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How much credit card debt is normal?

When it comes to credit card debt, many wonder how much is considered normal. Understanding this can help you gauge whether your financial situation is on track or if you need to make adjustments. Average credit card debt In Maryland, the average credit card debt per household is approximately $6,933, which is higher than the national average of around $5,800. While residents commonly carry a balance, the amount varies widely depending on individual circumstances. Comparing your debt to the state average can give you insight

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Effective ways to manage overwhelming credit card debt

Dealing with overwhelming credit card debt can be a daunting challenge for many Maryland residents. However, a few effective strategies can help you manage this financial burden.  Create a budget Start by listing all your sources of income, including salary, bonuses, and any other earnings. Track your monthly expenses, categorizing them into essentials like rent, groceries, and utilities, and non-essentials like dining out and entertainment. Analyze this information to understand where your money is going and identify areas for potential savings.  Debt consolidation Debt consolidation

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5 reasons students can graduate with a lot of credit card debt

College is often a time of growth, learning and exploration. However, for many students, it also marks the beginning of a journey fraught with financial challenges. One can be managing credit card debt. 1. Lack of financial education Many college students enter higher education without a solid understanding of personal finance. They may not understand how credit cards work, how to budget effectively or how to manage debt. Without this knowledge, they may misuse credit cards and accumulate high levels of debt. For example, without

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Why tracking your credit card spending is important

In today’s fast-paced world, keeping an eye on your finances is more important than ever. One key aspect of managing your money effectively is monitoring your credit card spending. Understanding the importance of tracking your credit card transactions can help you take proactive steps toward achieving financial stability. Avoid overspending Monitoring your credit card spending gives you better control over your finances. It also allows you to stay within your budget, avoid overspending and identify unnecessary expenses so that you can make adjustments accordingly. Detect

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When do I have too many credit cards?

It is common and often even necessary for people to have more than one credit card. Multiple cards allow you to take advantage of rewards programs and provide a safety net in case of emergencies. However, possessing an excessive number of credit cards may lead to burdensome debt if you are not careful. Generally, financial trouble happens because of particular issues stemming from having too many cards. Trouble keeping up with payments Juggling due dates across numerous credit cards inevitably leads some borrowers to forget

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How credit card debt can impact your life

As reported by the U.S. Census Bureau, the average American has almost $8,000 in credit card debt. Credit card debt is a growing issue for many people, and its impact can extend far beyond financial strain. Relying on credit cards might seem like an easy solution for immediate needs or emergencies, but accumulating debt can have long-lasting and far-reaching effects on various aspects of your life. Understanding these impacts can help you make more informed decisions about using credit cards and managing your finances. As

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