When the economy takes a turn downward, many people have to make changes to both what they purchase and how they purchase it. Many Americans have begun to make a budget in order to better manage finances. But for necessary expenses, some turn more heavily to credit cards.
Credit cards can be a tool to finance everyday purchases until the economy turns around. But relying on credit cards can lead to credit card debt. In many cases, increasing credit card debt can be taken care of by the consumer by cutting back spending and paying it off. For some, the balance can get out of control and the consumer has few options to pay off the balance. One option for those facing substantial credit card debt is bankruptcy.