COVID-19 Update: In order to best serve our clients, our office remains open for business.
To protect your safety in response to COVID-19, we are offering our clients the option to meet with us, via telephone or in-person, based on the client’s choice. Please call our office to discuss your options.

Why eliminating credit card debt should be a priority

On Behalf of | Jan 11, 2017 | Chapter 13 Bankruptcy |

Many Ohio residents make promises to themselves at the beginning of a new year to improve their lives in some way. For example, some may choose to pay off bills. Reports indicate that the average U.S. debt-carrying household is responsible for at least $16,000 in credit card debt. Such debts can rapidly accumulate when one continues to make credit card purchases and only pays the minimal amount of monthly dues.

Debtors are encouraged to eliminate the entire balance of credit card debt preferably every 30 days in order to avoid paying soaring interest rates that are attached to lingering debt. The Federal Reserve increased interest rates in December 2016. As a result, credit card debtors may have to pay more than the average amounts of interest which have bordered close to $1,300.

Despite the interest rate hike, there are several ways credit card debtors can get extra cash to gain control of their financial situations. The first idea is to hold a sale for household and other personal items that are not being utilized. Opting for a cheaper vehicle may also help debtors lower car payments and get extra money to put toward paying credit card debt. When extra income, such as a raise or bonus, is acquired, advisers recommend using the amount to eliminate debt. People with relatively good credit can also swap a high-interest credit card with a balance for a card with a better rate. Asking for help from a credit card counselor can also help credit card holders find solutions.

Bankruptcy is another alternative that may be available. When this route is contemplated, an attorney can describe the differences between the two principal forms that are available to consumers and point out the eligibility requirements for each of them.


FindLaw Network

*We Accept Debit/Credit Cards