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Debt relief for credit card balances leftover from college years

This time of year is full of eager students graduating from the many other colleges and universities in the Wayne County area. While local residents are rightly proud of these young Michiganders and their accomplishments, the fact is that some of them are entering the "real world" already burdened by credit card debt that may not be so easy to overcome.

College students with credit cards often tend to carry a balance on their cards, paying just the minimum monthly amounts rather than paying the balance off every month. Many see this as a way to cut their expenses in the short term, not taking into account the accumulating interest. They are also unlikely to take into consideration the long-term effects on their credit scores that carrying large balances can have.

With all of the academic deadlines college students have to juggle, it may be understandable that they miss a credit card payment deadline now and then. Unfortunately, this can quickly lead to penalty interest rates kicking in. If and when this happens, borrowers should call their credit card company to ask for help, perhaps lowering rates or forgiving penalties. But college students also are likely to feel intimidated or even ashamed in these situations, and not take advantage of help that's available.

In fact, there are many different debt relief options available for young graduates struggling with credit card debt they racked up during their college years. Any number of organizations will offer credit counseling or consolidation options, for example. And some young people may just need that kind of solid information, assistance with budgeting and financial planning in order to get back on the right path. But they should be careful of a deal that seems too good -- some for-profit companies pose as counseling agencies in order to try to sell consumers on consolidation plans that can do more harm than good.

Another option that young people struggling with credit card debt may wish to consider is filing for bankruptcy. Some students may have paid their tuition with credit cards, for example. Bankruptcy can eliminate debt like this. Bankruptcy is not a decision to be made lightly, but it can offer a fresh start to young people with overwhelming debt.

Source: Fox Business, "6 Credit Card Mistakes Students Make," May 22, 2014

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    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

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    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

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    Posted by MarleneJanuary 8, 2014

    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

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