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Debt elimination strategies in Kentucky

One very popular method that Kentucky consumers use to pay off debt is called the snowball strategy, where they start with the smallest debts and pay them off. As smaller debts are paid off, individuals then move on to larger obligations. The reason this tends to work is that when people feel they are making progress or have achieved a goal, even a small one, they are likely to keep working towards a larger goal.

Although this form of debt elimination is popular, and in many causes successful, it is not always the best strategy for everyone. People who choose to tackle smaller debts may begin to feel that they have a better financial situation than they do, which may lead to overuse of credit cards again.

Another potential issue with the snowball method is that this method may take longer and cost more than a more direct approach to debt elimination. Balances that have higher interest rates should be tackled first in some cases to reduce the amount of money that is required to get out of debt. Which method works best often will depend on the person in question's psychology and what motivates them.

If people have an enormous amount of credit card debt, even the best repayment options may not work for them. In these cases, consumers may be able to discharge some of their unsecured debt by filing for bankruptcy. However, the process is not necessarily suitable for every situation, and an attorney who has experience in this area of the law can describe the eligibility and other requirements which discussing with a client the other forms of debt relief that may be available.

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Law Office of Ginger C. Cord, PSC
155 E. Main Street
Suite 330
Lexington, KY 40507

Toll Free: 800-762-6916
Phone: 859-963-2073
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