Rapper Azealia Banks hit with credit card lawsuit
The unsound practice of racking up high credit card debt is not limited to Miami. Hip-hop artist Azealia Banks is being sued in a New York court by a credit card issuer based in California. According to a report, Banks has accumulated more than $130,000 in credit card debt that is now in delinquent status.
Banks is better known for her fierce lyrics and energetic performances, but she is also famous for her tumultuous life outside the recording studio. Banks was recently in criminal court defending against a misdemeanor charge, and the lawsuit by City National Bank is adding to her legal woes. Court documents show that the rapper owes $87,000 spread across two credit cards that she applied for in 2012. Last year, Banks obtained $50,000 line of credit at the time she started working on her latest album, which just happens to be titled “Broke With Expensive Taste”.
Credit card issuers often file lawsuits as a strategy of last resort. Cardholders faced with lawsuits related to unsecured debt could be in a better position to get a fresh financial start and stop creditor harassment once and for all. In some cases, a Chapter 13 bankruptcy filing could be an adequate strategy since it would require the formulation of a manageable payment plan.
Debtors should keep in mind that although filing for bankruptcy is a good strategy in some credit card lawsuits, this is a difficult decision to make and live with. There are pros and cons involved, but an important aspect is that filing for bankruptcy can put at least a temporary stop to creditor harassment and is the first step in obtaining a fresh financial start.