Many Ohio residents use credit cards to pay for educational expenses, medical bills or to get rewards. However, there may come a time when it becomes difficult to keep up with the payments. An average household carries $5,700 in credit card debt while the number balloons up to $16,048 when only those who have outstanding balances are considered. To pay off balances, debtors may choose between the avalanche or snowball method. It is also a good idea to create a budget as well as determine one credit card to start paying down beyond the minimum payment.

Those who choose to use the avalanche method will pay off the balance with the highest interest rate attached to it. This keeps the debt from growing much bigger, which may make it easier to actually pay down that balance in a timely manner.

The snowball method may be beneficial for those who are need to see a tangible result quickly. Any extra payments beyond the minimum payments go toward the card with the lowest balance. Once that balance is paid off, extra payments go toward the card with the next lowest balance. Getting rid of one whole balance may provide motivation to keep paying off that debt even if it may cost more to do so over the long run.

However, some people are not financially able to use either method, and they may wish to file for Chapter 7 bankruptcy. It may be possible to stop creditor harassment while having many unsecured debts, including credit cards, discharged within a short period of time. An attorney may explain the benefits of making such a decision or if an individual may qualify for Chapter 7.