Houston Bankruptcy Law Blog

Although there have recently been some reports indicating a potential economic recovery underway, there are still many signs that the economy is still fragile. Ever since the recession, consumers in Texas and elsewhere have been cautious about racking up any debt on their credit cards. However, many are still unaware of some of the basics regarding how credit cards work, which could cause them to face overwhelming debt problems.

One thing that consumers may benefit from being aware of is that borrowing money from credit card companies is not like borrowing money from a friend or family member. Friends and family may not mind if one pays them back a little bit late. However, a credit card company is unforgiving. The credit card company will charge significant fees for late payments, while also penalizing late payments with increased interest rates.

Nobody wants to spend more money than needed when obtaining necessary medical treatment. Most people in Texas are wary about running up large medical bills because these can quickly turn into an overwhelming debt problem. Luckily, however, there are a variety of ways that allow people to minimize medical bills while still obtaining the required medical treatment.

One important step in saving money on medical bills is to obtain quotes from different providers for the desired medical procedure. Many times this can save a person a significant amount of money. In one instance, a patient was quoted $2,400 for an MRI on his neck from a local hospital. However, he was able to find an alternate medical provider who offered to perform the MRI for only $350.

For many people, going to college for the first time meant the first time living independently away from parents and family. It also once meant obtaining the first credit card, which many looked at as another ritual of reaching adulthood. However, following the recent recession in Texas and the rest of the U.S., the number of college students carrying credit cards has declined, which could help in curbing overwhelming debt among college students.

Along with the recent recession, a 2009 law which tightened regulations on credit card companies also contributed to the decline in college students signing up for credit cards. The law increased monitoring and disclosure requirements for credit card companies. It also tightened regulations on the ability of credit card companies to offer instant approval of cards to younger people. Now, applicants are required to have a history of independent income or a co-signor prior to being able to obtain a credit card.

The numbers of consumers burdened with unmanageable medical debt are growing. People try numerous ways to resolve the problem but many find themselves unable to find a way out that will not strap them even further. Amazingly, people seem to be largely unaware that there is a governmental program that will quickly and totally wipe out consumer medical bills and credit card debt. In Texas and nationwide, the remedy is a consumer bankruptcy filing known as a Chapter 7.

Recently, a couple reported that they had about $65,000 in credit card debt. They amassed the debt over a period of years paying for medical expenses for their severely ill child. Some of the debt also built up paying mortgage payments and utility bills due to the high medical expenses. What isn't generally known is that many people who have runaway medical expenses are actually covered by medical insurance! This couple's situation of overwhelming debt is indicative of so many similar individuals and families who face chronic illness.