Debra Booher &Associates Co., Lpa Click here to get your free Legal evaluation
Call Us Today Toll Free
888-542-1300

Good reasons to pay down credit card debt

Ohio residents who have high credit card debt may be causing numerous financial problems for themselves. Perhaps the most obvious impact is that payments can take money away from an emergency fund or retirement savings account. On average, an American household has about $5,700 in credit card debt. If it takes seven years to pay off that debt at an annual interest rate of 20 percent, an individual will pay $5,000 in interest.

That money could be put into a retirement account that returns 7 percent per year. Those who have an average amount of credit card debt lose $50 a month on average that could be put into such an account. That could translate into $25,000 in lost retirement money over 20 years. Therefore, it is in a person's best interest to get rid of credit card debt as quickly as possible.

While it may not be easy to do so, there are steps that a person can take immediately to get a handle on their credit card debt. For instance, it may be best to start paying the cards that have the highest interest rate. It may also be a good idea to talk to a lender about possibly lowering the interest rate being paid on a card.

Individuals who are looking for debt relief may find it by filing for bankruptcy. Bankruptcy may allow debtors to have debts reorganized and repaid in a timely manner. If there are remaining debt balances after the repayment period ends, those debts may be discharged. In some cases, car loans and other balances may be crammed down, which may make them easier to pay. During the repayment period, creditors generally cannot make collection calls, garnish wages or seize assets.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Cuyahoga Falls Office
1350 Portage Trail
Cuyahoga Falls, OH 44223

Cuyahoga Falls Law Office Map

Beachwood Office
3401 Enterprise Pkwy.
Suite 340
Beachwood, Ohio 44122

Map & Directions

Independence Office
4700 Rockside Rd
Suite 415
Independence, Ohio 44131

Map & Directions

Westlake Office
1991 Crocker Rd
Suite 600
Westlake, Ohio 44145

Map & Directions

Canton Office
4450 Belden Village Street NW
Suite 204
Canton, Ohio 44718

Map & Directions

Ravenna Office
2633 St. Rt. 59
(Orchard Plaza)
1st floor
Ravenna, Ohio 44266

Map & Directions