With the rise in interest rates has also come an increase in late credit card payments. According to Business Insider, while late payments on other kinds loans (student loans, for instance, and mortgages) remain the same or are in fact decreasing, late payments on credit cards are on the rise.

According to Michael Pearce, a senior US economist at Capital Economics, the rise in late payments does not indicate a crash like 2008. It could, however, be a portent of things to come.


People facing heavy credit burdens, though, often succumb to the temptation to empty savings and retirements accounts to pay credit card debt, even taking out new loans against the equity in the homes they have so patiently build back up after the 2008 crash. Worse, people are sometimes told to do so by creditors and collection agencies.

The law does not require you to do that. In fact, society wants you back in the game. A bankruptcy enables you to start from scratch by eliminating your credit card debt so you can keep most common retirement accounts. It does not help society if lose your retirement and end up needing public support at the end of your working life.

If you are told by a debt collector that a bankruptcy will not help you or that credit card cannot be eliminated in bankruptcy, do not believe them. They are not there to advocate for you. To get an advocate, someone who will be in your corner for you and you alone, contact an experienced bankruptcy attorney who is bound by attorney ethics rules to advise you as to your options and which ones work best for you.