People who use credit cards to cover their basic cost of living expenses can quickly find themselves trapped in debt from which they cannot escape. When your expenses exceed your income, you may have no choice but to use credit cards to cover those costs.

Even if you have been working fewer hours than usual, your utility companies still expect to get paid, and you still need groceries. While you may be grateful that you have credit cards to help you cover those costs, eventually you could find yourself carrying a dangerously high balance that you have no way of paying off in full.

There are plenty of companies that advertise debt relief solutions for those dealing with credit card debt, but bankruptcy may actually be a better option if you can’t manage your credit card payments any longer.

Debt relief and settlement can mean more debt and damaged credit

Companies advertising that they will help you settle your credit card debt or consolidate your existing debts into a single loan make money off the services that they provide. However, their clients have very little recourse if they don’t do their job.

Many times, these services involve taking out a loan from the company to pay off settlement amounts or consolidate your balances. When you can’t pay your monthly bills again next month, you may take out a new credit card or start creating a balance on a card you just transferred over to a consolidation loan. In a few months, you could find yourself in an even more financially precarious position than you were in before you consolidated or settled your credit card debt.

Bankruptcy offers the discharge of your unsecured debts. Although it will negatively impact your credit in the short-term, it can get you out of an untenable financial situation and help you achieve financial equilibrium by setting you up for a debt-free future.