Credit Craziness

The modern western man lives on credit, that just the way it is. It is supposed to be for everyone’s benefit it is told. The individual needs power to purchase now and the banks need to make money on the money it lends out. Credit cards move around all this virtual money that really doesn’t exist.
People often have several credit cards from different banks and run them up to the limits of the cards. They hope to be able to cover the costs of these cards from revenue earned thru spending on the cards or in other methods. More often than not these bills cannot be paid for any number of reasons and then the real troubles begin. The credit card companies demand payment and file legal proceeding to get their money. The owner of all this debt is left with few options. Bankruptcy is one which has very severe ramifications. Very little to no assets can be owned by the owner. Getting credit again will be next to impossible. To get out of debt he can try negotiation with the financial institutions involved and try to work out a deal. This is probably very difficult to do in a one on one setting, that’s where lawyers come in and can get things done. They negotiate for a huge number of clients creating a better negotiation environment for their clients and striking deals that will partially reimburse the creditors and still keep the individual solvent. The credit card companies will sometimes take 40 or 30 cents on the dollar just to recoup some of the losses. It makes you wonder why it is so easy to get one of those cards.
Happy spending.