Credit card debt can often make you feel as though you are stuck in an impossible spot, the interest rates are often high and it can be difficult to feel as though you are making any headway on the debt. There are several options that you can look into such as consolidating your debts, trying a zero-interest credit card and transferring the balance or trying a snowball method to repay off the debts. Entering into bankruptcy is often a popular choice during this time as well.
Consolidating your debts could be a helpful way that you could reduce your overall monthly payment. By working with your creditors to consolidate your debts it’s possible that you could reduce your interest rate and pay down what you owe much more quickly.
Qualify for a zero-interest credit card before your debts get too bad and you will be able to transfer over what you owe on the cards with high interest, you can pay down more of the principal balance quickly without incurring the added interest costs. If you have a credit card that regularly charges as much as 19% interest, you could be waiting years before you are able to pay it off fully.
The snowball method is a particularly powerful method that allows you to pay your minimum payments each month and add a little extra to a single debt until it’s paid off in full. As you continue to pay off debts, you take what you were paying on the original debt and roll it into another debt that you owe. As you continue to snowball these effects onto other debts, you will be able to pay off what you owe much more quickly.
Choosing bankruptcy can also be an excellent option. If you can’t pay back what you owe and you need to look at another option, choosing bankruptcy could allow you to liquidate your assets or establish a repayment plan to discharge your qualifying debts. If your debts are primarily unsecured, you could have a solution for discharging them immediately.
Contact us today if you would like to learn more about the bankruptcy process.
This post was written by Trey Wright, one of the best Bankruptcy Lawyers in Tallahassee Florida. Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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