If you’re falling behind on your credit card payments, you’re not alone. Many people in Michigan and across the country face the same challenge, especially when interest rates, late fees, and minimum payments make it harder to catch up. The good news is there are steps you can take to get control of the situation before things get worse. Our Southfield, MI bankruptcy lawyer can help you understand your options and guide you forward.
Options For When Credit Card Debt Gets Out Of Control
Whether you’re just starting to miss payments or you’ve been behind for a while, here’s how you can start turning things around.
Take A Closer Look At Your Finances
Before making any decisions, review your income, expenses, and debt balances. List out all your credit cards, how much you owe on each, the minimum payment, and the interest rate. Then compare that to your monthly income and essential expenses like housing, food, and utilities.
This can help you see where your money is going and whether there’s anything you can cut back on temporarily. Even small adjustments can free up money to put toward your debt.
Don’t Ignore The Problem
It might feel easier to avoid calls and letters from creditors, but the longer you wait, the more difficult the situation becomes. Missed payments can lead to late fees, higher interest rates, and damage to your credit score. Eventually, the account may be sent to collections or result in a lawsuit.
If you’re struggling, reach out to the credit card company directly. Some may offer temporary hardship programs, reduced interest, or modified payment plans. While this won’t eliminate the debt, it can give you breathing room.
Consider Debt Consolidation Or Counseling
If you have steady income and good credit, consolidating your credit card debt into one loan with a lower interest rate might help. This can simplify your payments and reduce the total interest you’ll pay over time.
Nonprofit credit counseling agencies are another option. A financial counselor can help you set up a debt management plan, where you make a single monthly payment and potentially receive reduced interest rates from creditors. Just make sure to work with a legitimate agency—not one that charges high fees or makes unrealistic promises.
When It’s Time To Talk About Bankruptcy
If your credit card debt is more than you can realistically repay—especially if it’s affecting your ability to pay for rent, groceries, or medical care—it may be time to consider bankruptcy. For many people, it’s not a last resort but a legal tool to reset their financial future.
Filing for bankruptcy can stop collection calls, lawsuits, and wage garnishment. It can also discharge most unsecured debt, including credit cards.
Get Help Before It Gets Worse
If you take away anything from this article, let it be this: Ignoring credit card debt won’t make it go away. If you’re behind on payments and unsure of what to do, we’re here to help.
At Gudeman & Associates, P.C., we work with individuals and families across Michigan. Our experienced attorneys are known for helping our clients develop practical solutions for overwhelming debt. Contact us today to speak with a member of our team and take the first step toward financial relief.
