I get asked this question often enough that I decided to actually sit down and write a post about it. If I file bankruptcy and don’t have to pay for all the debts that gets wiped out, Who ends up paying for it? I will tell you who does not pay for it, the bank does not pay for it. The fact of the matter is that the credit card business is the most lucrative part of the banks portfolio. Often the credit card business pays and sustains other banking businesses. And the credit card business is only growing more and more
A record 182 million Americans have credit cards this year compared with 147.5 million in 2010, according to TransUnion, and are carrying more than $1 trillion in debt. Consumers will add $80 billion to their tabs this year, according to projections from WalletHub, with the average credit card debt per household hitting $8,701 during the third quarter, up 4 percent compared with the same period in 2018.
Interest charges for credit cards have risen despite several Federal Reserve rate cuts. The average interest rate is 17.3 percent, near a record high, compared with 17.15 percent a year ago, according to CreditCards.com. The increase has been steeper for consumers with lower credit scores, to 25.37 percent compared with 24.34 percent last year.
So in reality you have already paid for it when you paid 25% interest rates on your debt. So when you are considering filing bankruptcy, the last thing you need to be worrying about is the banks profit margin. They know what they are doing. The question is, do you want to muddle through bankruptcy laws by yourself or do you want to hire a professional? Make sure you are protected from the credit card companies and contact an experienced bankruptcy attorney Roland Kedikian to guide you through the process.
