Is it any wonder why so many Americans are debt-ridden with credit cards? If you take a moment and analyze just what refinance loans taking place, it is truly no wonder. The temptation to buy it now and pay for it later has caused many people to mortgage their future. They wind up paying a tremendous amount in interest just to obtain the item or service now.

The typical interest rate on credit cards is around 12%. Some cards start out with a very low, introductory interest rate of somewhere around 1%. However, this teaser rate seldom remains anywhere near that low; couple that fact with a default or late fee and the interest can skyrocket to 29%. Imaging how difficult it can be to repay debt that is compounding at nearly 30% interest. The minimum payments alone can be more that one can afford to pay.

Due to this fact, many Americans are forced to consider bankruptcy. It is not something that one sets out to do; however, it can be a person's saving grace. In many cases, a person with no significant assets and mainly unsecured debt can gain a fresh start. Of course, there are some debts that cannot be eliminated through bankruptcy. Those debts include, but are not limited to, student loans, recent taxes, parking tickets, child support, alimony and debtor incurred through fraud.

An experienced bankruptcy attorney can advise on either a Chapter 7 of Chapter 13 bankruptcy case. The differences between the two cases are great. In a typical Chapter 7 bankruptcy case, the individual safeauto receive a fresh start and will begin to recover from bankruptcy within six months to two years. In a Chapter 13 bankruptcy case, the individual enters into a thirty-six to sixty month consolidated payment plan to repay creditor. The amount being paid each month is determined from the person's income, expenses and underlying debt. In no event can the payment plan exceed sixty months. There are cases where a person is unable to file either Chapter 7 or Chapter 13 bankruptcy. In those cases, a direct payment arrangement with creditors is advisable.

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