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How to lower credit card debt

Credit card users in Kentucky may be interested in learning about the options that are available for paying off their debt. Once a person accumulates credit card debt, it can be difficult to pay off because of high interest rates. Some cards charge interest of between 20 and 30 percent. Other types of debt, such as mortgages and home loans, often have significantly lower interest rates, so paying off credit card debt should be a priority.

People who are looking to save money and pay off a balance faster may want to consider transferring the balance of one card to another with a lower interest rate. Although many credit cards charge a small fee for balance transfers, they often provide an interest-free introductory period. By completing a balance transfer, card holders can lower the amount of interest they need to pay.

Another option for paying off a balance faster is to take out a loan. Banks might offer personal loans with comparatively low rates of interest to creditworthy borrowers. 401(k) plans allow people to loan themselves money from their accounts. The rates paid on a personal loan are tied to the borrower's credit score, but 401(k) participants are borrowing from themselves, and thus credit is not a factor.

People who have a high amount of credit card debt that they can't pay off may also want to consider filing for bankruptcy as an alternative. The two primary forms of consumer bankruptcy are Chapter 7 and Chapter 13, and an attorney can outline the eligibility requirements of each.

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