Millions of people in New York and across the United States live with credit card debt. According to the 2019 study of credit card debt in American households, citizens reached $466.2 billion in card balances carried from month to month. This showed a 37% increase within the past five years. 

The problem with revolving debt is that it often carries interest charges, which can make it even more difficult to pay off the final balance. Filing for Chapter 7 bankruptcy is an option for those who wish to break free from the burden of credit card debt. People who choose this route should be cautious once their bankruptcy is discharged. 

Rebuilding credit after bankruptcy 

It is no surprise that declaring bankruptcy can affect one’s credit score, making it hard to qualify for home loans, auto loans or other types of financial aid. There are ways, however, people can rebuild their credit after bankruptcy. 

Some people opt to apply for another credit card in hopes that it will help increase their credit score. Yet, it is critical to be aware of the dangers credit cards bring to those seeking assistance. 

Subprime cards may mean trouble 

People who have a bankruptcy on their credit report may find it difficult to apply for credit cards. There are credit card companies, however, that offer credit cards to those who have a credit score lower than 600 or have other credit issues. In order to compensate for the risk taken when lending money to those with low credit, subprime companies often charge high interest rates, maintenance fees, processing fees and annual fees. Consumers should be cautious when applying for these cards as they could lead to further credit card debt.