Black Friday

It’s Thanksgiving night, the turkey has been carved, the mashed potatoes slathered with gravy, and the pumpkin pies sit cooling on the counter. But the actual hardcore planning taking place is not what other treats and side dishes to prepare, but a plan of attack later that night or early Friday morning for Black Friday sales. 

For as long as I can remember, members of my Dad’s side of the family banded together in small groups, with ads strewn around and talks of gathering provisions and timetables for each “must have” sale item.

According to a recent article in the Huffington Post, 1 in 4 holiday shoppers will participate in Black Friday sales and most will spend between $250-$1,500 during these sales, mostly on credit cards. According to the article, Black Friday Shoppers are 12% more likely to carry a balance of at least $3,000 on their credit cards.

During my time as a consumer bankruptcy attorney, credit card debt was a leading contributor for clients to come see me. Overspending on credit cards, coupled with life changes such as lay-offs, medical issues and other unanticipated problems led people to consider options to get out of the debt liability.

In 2005, the Federal Bankruptcy Code had a major overhaul, one point of which was to stop people from running up credit card debts with the intent to eliminate debts. Credit card companies now have the power to object to Chapter 7 and Chapter 13 filings if they can prove that the debtor ran up the credit card just prior to filing, which can lead to those debts not being discharged in your bankruptcy.

To avoid this credit debt bomb this holiday seasons-

• Use debit cards and cash when possible
• Set a realistic budget to pay off high credit card debts as quickly as possible
• Stay away from store credit cards and short term 0% credit card offers.  That 6-15 months goes quicker than you might think, and then you are stuck with high balances and high interest rates.

But, if you do run into high credit card debts that you know realistically that you will not be able to pay back over time then look towards debt settlement options. An experienced debt settlement attorney can negotiate with the credit card companies to lower your rates, lower your balance or settle for pennies on the dollar. 

To schedule a FREE CONSULTATION with the Law Offices of Brandon Rosenbloom, call us at 678-609-8724 or contact us online today.

Happy Holidays and be careful of the crazy Black Friday crowds.