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Credit card offers can lead to debt

When people in Louisiana sign up for a rewards credit card, they may not realize how easy it can be to wind up with an insurmountable amount of credit card debt. When people receive a signup bonus or other incentives to start using a new card, it can be easy to choose what appears to be a great deal. However, when early promotional periods come to an end and interest starts to rack up, people may find themselves in trouble, facing late payment charges and seemingly endless collection calls.

One issue that can arise for credit card holders is the appeal of some promotional rewards. Many credit cards offer different types of travel promotions. In some cases, people receive miles when opening a card; they may be able to buy tickets with more miles than they have in the account with later purchases credited toward the existing tickets. However, if people don't buy enough to make up the mileage gaps, they will need to buy the miles from the credit card or airline. Sometimes, the cost of these miles can be as much as or more than buying a regular ticket.

Another problem can escalate once people have already started to fall behind on their bills. Late payments and the associated fees can begin to add up, but they become most serious if the credit card company changes payment terms as a result. Card issuers can hike cardholders' interest rates if their payments are 60 days late or more, resulting in an APR of 29.99 percent on their entire balance.

When debt begins to overwhelm a person, he or she may look for a way to find some form of relief. A bankruptcy attorney may provide information about how filing for Chapter 7 bankruptcy could provide a new path to a different financial future.

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