subject: Credit Nation - The Negative Repercussions [print this page] In 2008 we the taxpayers of the United States bailed out the huge banks and stockbrokers with close to a trillion dollars in emergency funds. These financial institutions were labeled "too big to fail" and dire warnings were given as to the fall of our entire financial system if the bailout were not approved immediately.
Unfortunately, Congress did not impose any safeguards and consumer protection to control the activities of the bank or at least stipulate in what manner are they going to get and keep receiving the money. Things do not look good for the average consumers as they are forced to pay the price of the bailout by paying more money to credit card companies in the form of interest rate, fees and penalties.
Many people have felt the strain of the financial disaster and are planning to get out of credit card debt, no matter what the circumstances are. For many people, this would always mean stop taking in debt and start cutting credit cards in two.
For those who have accumulated too much debt, it may mean going to credit repair agencies who will negotiate settlements for them and help them get rid of credit card debt in that manner. For others it will mean either just walking away from the bad debt or filing for bankruptcy.
By getting rid of credit card debt using the bankruptcy method you will still need to pay some of the debt off, but a lot less. This will ruin your credit for a while but eventually you will be able to build it back up. Bankruptcy costs are usually around $500 to $2000, depending on the attorney and how complicated your case is and whether or not you own any real property such as a house or condo.
