Yes, even if you cancel a credit card or close the account, you are still responsible for any charges on that card.
For example, perhaps you initially applied for a credit card for convenience. But over time, the high interest rates really began to impact your budget. You may have realized that it was going to be too difficult for you to pay off what you owe, so you decided to cancel the account.
While this does stop you from accruing new charges, you are still responsible for anything that has already been charged to the card. Moreover, if you continue to let the balance roll over at the end of the month, interest rates are going to apply, so the amount that you owe could actually increase.
What should you do instead?
It is fine to cancel a credit card, just do not assume that it means you have relieved yourself of that financial obligation.
Instead, you need to look at other options to address your debt. One option is bankruptcy. If you file for Chapter 7 bankruptcy, you liquidate non-exempt assets, and the money is used to pay back creditors. If you file for Chapter 13 bankruptcy, your debt is consolidated into a repayment plan, and you then make monthly payments.
Exactly which type of bankruptcy works for you will depend on the unique details of your situation. You have to see which type of bankruptcy you qualify for and which will best address your debt.
But either way, the key is to remember that you need to be proactive about debt relief options, rather than just canceling the card and trying to ignore the obligation. Take the time to carefully consider all of your legal options.
