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Chapter 7 bankruptcy can help curb credit card debt

U.S. residents struggle with some of the highest per-household debt rates in the world. Unsecured debt like credit card debt can swamp a Kentucky family, leaving the household to struggle under the weight of high interest rates. It may be helpful, in the face of rising credit card use, to consider options for debt relief, from consolidation to Chapter 7 bankruptcy. 

In the last 10 years, the market has seen unprecedented growth. U.S. households now account for some $1 trillion in unsecured credit card debt. Over 171 million people around the country have access to credit -- sometimes more than they can handle. Lenders are offering higher limits on credit cards and lower rates as incentive to use more credit. 

Some families are pushed to find alternate sources of credit when cards are maxed out. One such source is a car title loan, which is a short-term loan that uses an individual's personal vehicle as collateral against the loan. These loans are dangerous as they must often be paid back in 30 days, or else the lender can possess and/or sell the vehicle used as collateral. For desperate families, this can be a tempting short-term solution. 

Throwing good money after bad is not necessarily the most sound financial plan, but for some Kentucky households, it may seem the only way out of a harrowing debt situation. Thankfully, options like Chapter 7 bankruptcy exist for those facing significant financial issues. With the help of an experienced bankruptcy attorney, unsecured debt like credit card debt can be wiped out entirely through a Chapter 7 bankruptcy discharge. 

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