Credit card debt has a way of quickly adding up. If you don't like what you see when you review your credit card statements, it's critical to take the necessary steps in finding relief.
In a perfect world, you'd have enough cash on hand to eliminate your credit card debt. This gives you the fresh start you've been seeking.
Unfortunately, most people aren't in this financial position. Instead, they have loads of credit card debt and no way to eliminate it.
While paying the minimum is all you're required to do, there's something to remember: This is a long road to paying off your debt in its entirety. It's possible you'll make the minimum payment for several years, and still have some debt remaining.
If you're facing mounds of credit card debt, here are some strategies to consider:
- Use a balance transfer credit card: This allows you to bring all of your credit card debt under one roof, thus saving you money on interest charges. Also, with a zero percent introductory rate, you're in position to make fast progress.
- Tackle the credit card debt with the highest interest rate: This debt is costing you the most money, so you want to eliminate it as quickly as possible.
- Take it one chunk at a time: When you look at your credit card debt as a whole, such as $25,000, it's intimidating. This alone is enough to scare you away from getting serious. However, when you take it one small chunk at a time, such as $2,500, it's easier to see yourself making progress.
Even if you follow these strategies, you could still find yourself in a bad spot. This is when it makes sense to consider Chapter 7 bankruptcy.
If you qualify, you can use Chapter 7 to discharge many of your debts, including credit cards. From there, you're in position to make better financial decisions to ensure that you never end up in the same situation.
Escaping credit card debt is never easy, but a bankruptcy filing can help. Once you understand the legal process, you can decide if it's right for you.
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