Bankruptcy Credit Card

When we talk about a bankruptcy credit card, we mean a credit card you can use to hopefully stave off bankruptcy, not one you may apply for once it has happened.

The spectre of bankruptcy has loomed even larger these past eighteen months due to the global economic crisis. It is obviously the last resort for anyone who has hit the hard times financially. However, it must be remembered that a bankruptcy is not necessarily brought about by any reckless behaviour on the part of the individual. Jobs can be lost, businesses can fail, and sometime no matter how well-meaning your intentions, the path ahead is pretty much laid out for you.

However, as a final gasp, it is certainly worth looking at a balance transfer credit card as a means of alleviating your woes. It may not revive your business or reinstate your job, but it may provide some crucial breathing space so you can start to manage any credit card debt a bit better. It may even be that it’s your credit card debt that is proving the final straw, and pushing you towards bankruptcy. Sometimes it only takes that little extra burden to make a person throw in the towel completely.

By the same token, a bankruptcy credit card in the form of a balance transfer card may be that little extra help when you need it, and keep the towel on the rail where it belongs. A balance transfer card will allow you to reduce your credit card debt to a lower rate of interest. If your debts are of a certain size, then a 0% balance transfer for the usual six months may not be sufficient time, but there are offers at slightly higher rates for longer periods, and also low-rate deals for the lifetime of your debt. Any of these may take the pressure off just enough that you can direct more attention to certain other financial matters, and that may make the crucial difference between staying solvent and becoming bankrupt.

Ultimately, your personal circumstances will dictate whether a bankruptcy credit card will help you avoid disaster, but it will certainly be worth an application. If your credit rating is about to be ruined by a bankruptcy, you may as well make use of any decent rating you may still have in a last attempt to set things straight.

If the worst does happen, bear in mind that a voluntary bankruptcy will forestall any creditors dragging you through the courts. Creditors legally have to quit chasing you when you declare yourself bankrupt. As the Inspector-General in Bankruptcy, Mr. Terry Gallagher, said: “Bankruptcy provides legitimate relief from debts incurred by those who are in genuine financial difficulty.”

• Comparison of Top 10 Credit Card Offers

Editor's Choice: Our Top Credit Cards

Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
HSBC Credit Card	Editor's Choice: 0% for 6 months Balance Transfer & No Annual Fee Featuring a $0 annual fee for life, and 0% p.a. balance transfer for 6 months, the HSBC Credit Card was voted the Best Transactor Credit Card for 2010.	16.99%	20.75%	0% for 6 months	$0	55
Suncorp Clear Options Standard Visa Card	A great 12 month balance transfer offer, combined with a low annual fee and a good interest rate on purchases.	12.24%	17.99%	1.9% for 12 months	$39	0