Jump To Navigation

Good Versus Bad Credit Card Debt

Posted on October 19th, 2015

For millions of American consumers who needed the assistance of a bankruptcy attorney to eliminate overwhelming credit card debt through personal bankruptcy, credit cards represent delinquent payments, creditor harassment and financial challenges they would prefer not to revisit.



An author for an article in Forbes magazine back in 2012, wrote about a distinction between good and bad credit card debt. The good credit card debt the author has in mind is related to the purchase of products or services that improve productivity and enhance future income. Repayment is not an issue because of the availability of additional income.

Bad debt, on the other hand, results from purchasing decisions made without proper thought and planning. Because credit cards allow people to buy goods and services without feeling the same immediate drain on wealth that comes from paying for things with cash, people tend to spend more on things they do not need. The impact of a credit card purchase is not felt by the consumer until the bill arrives, but even then the true impact is lessened by the ability to repay the debt in monthly installments.



Minimum monthly payments make credit card debt easy to manage, but financial challenges such as unemployment, medical expenses and unexpected life changes can quickly lead to delinquent payments and creditor harassment. A bankruptcy attorney can offer suggestions to resolve the financial challenges overwhelming consumer debt can create.



Chapter 7 bankruptcy offers an individual the opportunity to eliminate debt, but may not be available for consumers whose incomes are above a qualifying threshold. Chapter 13 bankruptcy permits consumers struggling with debt payments to repay their debt under a plan that offers them manageable payments. If the consumer makes the payments according to the plan, the balance of the debt can be excused. 



Source: Forbes, “Good debt bad debt,” Panos Mourdoukoutas, Nov. 24, 2012

Contact Us for a Free Consultation
Office Locations

Phoenix Office One
Wright Law Offices
2999 N. 44th St., Ste 600
Phoenix AZ 85018

Telephone: 480-845-0145 / 866-703-3287
Phoenix Law Office

Phoenix Office Two
Wright Law Offices
668 N. 44th St., Ste 320
Phoenix AZ 85008

Telephone: 480-845-0145 / 866-703-3287
Phoenix Law Office

Scottsdale Office
Wright Law Offices
7135 East Camelback Road, Ste 230
Scottsdale AZ 85251

Telephone: 480-845-0145 / 866-703-3287
Scottsdale Law Office

Tempe Office
Wright Law Offices
2238 S. McClintock Dr.
Tempe AZ 85258

Telephone: 480-845-0145 / 866-703-3287
Tempe Law Office

Avondale Office
Wright Law Offices
12725 W Indian School Rd, Suite E-101
Avondale AZ 85392

Telephone: 623-258-4480 / 866-703-3287
Avondale Law Office

Mesa Office
Wright Law Offices

4856 E. Baseline Rd.
Suite #104
Mesa, AZ 85206
Telephone: 480-845-0145 / 866-703-3287
Mesa Law Office

Glendale Office
Wright Law Offices
20325 N. 51st Ave., Suite 134
Glendale, AZ 85308
Telephone: 623-258-4480 / 866-703-3287
Glendale Law OFfice

Facebook IconTwitter IconVisit Us On Google+Visit Us On Google+