According to a study from the Consumer Finance Protection Bureau, 55% of credit card balances have revolved for two years or longer. The study also found that 82% of outstanding balances have been allowed to revolve for at least a month or more. When a balance is allowed to linger on a credit card, it is referred to as zombie debt.
One of the reasons people give for rejecting bankruptcy as an option for dealing with their debt is the impact it will have on their credit. Too many people mistakenly believe that they will never be able to get credit again after they file bankruptcy, but that isn't really the case.
Financial challenges face many North Carolina residents, with unemployment and unexpected expenses as two of the more typical reasons why people find themselves with significant credit card debt and barely able to make the minimum monthly payments. When even that becomes too much, it's not long before creditors start calling and sending demand letters. When there is simply no money to pay the debt, it is understandable to try and ignore the problem, but that will only serve to make matters worse. Debt collectors can and often do file lawsuits, and it's important to respond if that happens.