According to the Center For Responsible Lending, despite the pending Federal Reserve rule changes governing credit cards, many credit card companies are continuing practices that harm consumers. The Center For Responsible Lending took a look at the behaviors of the top eight credit card companies, Citigroup, Bank of America, JP Morgan Chase, Capital One, HSBC, Discover, American Express, and Wells Fargo.
One of the harmful practices that these companies are engaging in is applying consumer payments to the least costly balance first and allowing the most expensive balance to grow. For example, if a consumer charged an item costing $100 to their Citigroup credit card and then took out a cash withdrawal of $200, the cash withdrawal would cost them more money. Once the debtor makes a payment (of let’s say $50) that money might be applied to the least expensive charge first (the $100 item) while the cash advance balance is allowed to grow.
These types of practices can exacerbate a debtor’s credit card problems making it difficult for him/her to pay off debt. A matter of fact, depending on the debtor’s credit card balance, interest rate and income, paying off the debt on a credit card can become nearly impossible or at best improbable. That’s why bankruptcy is often the best choice for debtors who are overwhelmed with credit card debt . If a debtor files a Chapter 13 bankruptcy he/she can repay some or all of their credit card debt in 3 to 5 years if they have income to do so.

If not, they can file a Chapter 7 bankruptcy and discharge all of their credit card debt along with other secured and unsecured debt. Speak with a Dallas-Fort Worth bankruptcy attorney today to find out how bankruptcy can work for you.