Credit cardsApril 28, 2016

It is beneficial for debtors to start out with a clean slate after filing bankruptcy.

Once a debtor receives his/her discharge, the debtor is debt free.  This is a debtor’s  fresh start that we refer to.

All of debtor’s credit card debts are completely wiped out.   Their credit cards have a zero balance which is a great feeling for debtors.

However, it is so important not revert back to your old ways of incurring credit card debt.   As soon as you are able to obtain credit cards, you should try to budget so that you pay off your credit cards within 30 days.   If you cannot afford to purchase something, do not charge it.

Americans appear to be charging more and more.    The outstanding credit card debt was estimated to be $900 billion.   The credit card debt climbed to $917.7 billion for 2015.

Based upon all figures and estimates, it appears that consumers are reverting to pre-downturn bad habits.

Budgeting is key and changing your spending habits after you have filed a bankruptcy.

Bankruptcy is a fresh start and should be a fresh start on rethinking your old spending habits.