Florida parents may battle with child's credit card debt
On behalf of Bankruptcy Law Firm of Clare Casas on Wednesday, July 31, 2013.
Teaching a child how to be financially responsible is an essential lesson in their transformation into adulthood. However, what do Florida parents do when their child has made reckless purchasing decisions that have racked up thousands of dollars in credit card debt? This is a question facing many families who may or may not have the ability to assist in getting the debt under control.
The first issue to be addressed is for the parents to determine what pre-existing relationship they have with the debt. Were they a co-signor on the application? If so, this could put the parents on the hook in the event the child defaults on their payments to the credit card company.
If the parents are not a co-signor, they must then ask themselves whether they have the ability to assist their child. Many parents are also struggling with their own debt, which can limit the amount of disposable income they have to assist their child. Even if parents do have the ability to assist, they must consider whether this assistance will teach their children to be financially responsible in the future.
Credit card debt continues to be a major concern for many Florida families. With high interest rates, even the minimum monthly payments can transform into a significant hardship that cannot be satisfied. In such cases, looking into filing for bankruptcy may allow the family to emerge from the financial turmoil, with a clearer financial future, that can free them from the crippling debt that has long plagued their financial well-being.
Source: Tampa Bay Times, "Florida again leads the nation in foreclosures," Drew Harwell, July 9, 2013