The Zero Balance Dilemma

There was a time in the not-too-distant past when credit cards were difficult to obtain and aggressively protected by the people who held them. In recent decades, however, the number of credit card companies and financial institutions offering credit cards has exploded dramatically and many of the barriers to card ownership have disappeared.

The appeal of this seemingly “free money” has proven too powerful a temptation for many. Unfortunately, a reliance on one’s credit cards to meet basic living expenses or to make purchases that one’s income would not allow has led some of these parties into a compromising debt situation.

If your overwhelming credit card debt is crushing your credit score and is interfering with your financial freedom, it may be time to consider seeking relief through a bankruptcy filing. To schedule a free initial consultation with a compassionate and experienced attorney, contact the West Palm Beach bankruptcy lawyers of Eric Klein & Associates, P.A. at 561-353-2800.

What to Do When the Balance is Paid

When they recognize that their situation is increasingly out of hand, some credit cardholders make a concerted effort to pay off their credit card balances. Eventually, they may manage to pay a card in its entirety, and without a doubt there should rightfully be a sense of personal satisfaction when a statement arrives with a zero balance.

The question then is, what should a debtor do next? While it might seem logical to close the card in order to prevent the accumulation of another debt, this can actually have a negative effect. By closing an account, you may be shortening your credit history and will certainly be lowering the total amount of credit that is available to you. Each of these factors may hurt your credit score. It is generally advisable to continue to use the card, making small purchases and paying the bill in full each month.

Contact Us

For help resolving your current financial struggles, contact the West Palm Beach bankruptcy lawyers of Eric Klein & Associates, P.A., at 561-353-2800.