Credit card debt problems for stay-at-home Phoenix spouses
On behalf of Ellett Law Offices , P.C. posted in 1. Credit Card Debt on Tuesday, August 7, 2012
Credit cards are commonplace for many Phoenix consumers, as is the growing presence of credit card debt in Arizona and across the nation. Credit card debt is one that can build up unexpectedly and become a problem before some consumers are able to turn it around. This can lead to further debt problems, and even bankruptcy solutions later on if left unchecked.
For individuals such as stay-at-home spouses who don’t directly earn an income, credit cards can be an extra hassle. The Credit Card Accountability Responsibility and Disclosure Act of 2009 prevents individuals who don’t earn a direct income – such as stay-at-home spouses and college students – from obtaining a credit hard. However, spouses are able to apply jointly for credit cards, and a stay-at-home spouse can have a card in their spouse’s name.
In some states, this joint card ownership would be complicated, with the person who has their name on the card being the one responsible for any debt. Arizona, though, is what is considered to be a community property state. This means that, when both spouses benefit from the use of a credit card or loan of some sort, both spouses are responsible for any debt incurred. Even if the card is in one spouse’s name, both spouses can be held responsible in the eyes of creditors.
This may make a debt situation easier to handle, having two individuals to be responsible for debt. Yet, having only one household income can be a struggle, especially if one spouse must stay at home for health or childcare reasons. As with any credit card holder, smart spending practices are important to maintaining and avoiding credit card debt. When one finds themselves in a heavy debt situation, though, solutions such as bankruptcy may provide an orderly and positive means of resolving those financial problems while clearing the way for a return to financial stability.
Source: Fox Business, “Four Credit Card Myths for Stay-at-Home Spouses,” Janna Herron, July 24, 2012
Tags: bankruptcy, credit card debt, debt relief