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Chapter 7 just one way to handle credit debt

Credit card debt is one of the most pervasive financial issues facing the American family today. With consumer debt topping $1 trillion this past year, not to mention the associated $104 billion in interest, debt is clearly a problem for some Kentucky residents. Thankfully, there are a variety of ways for a family struggling with debt to handle it -- from savings and repayment methods, to debt reconstruction, to Chapter 7 bankruptcy in the most challenging cases.

For people with multiple credit cards, the "snowball method" can be a good place to start paying back debts. This method involves paying off cards in order from smallest debt to largest, allowing for quick psychological "wins" that help people continue down that path. Contrarily, the "avalanche method" espouses paying off the card with the highest interest rate first, then using the extra money to pay down the next-highest, and so on.

The "debt lasso" method leverages credit card offers that allow for a year interest-free. By paying balance transfers and moving all possible credit onto a zero-interest card, great headway can be made during that year to make a significant dent in debt before interest kicks back in. Finally, the "just hustle" method recommends using all available free cash to pay down existing debts, which of course is not always an option for everyone.

For some Kentucky residents, at least one of the above methods might work, but in some cases, debt has simply become unmanageable. In these cases, it can be valuable to look into Chapter 7 bankruptcy, which liquidates assets to pay down some debts and forgives others outright. For residents considering this option, the support of a dedicated bankruptcy attorney can be helpful in planning out the financial steps to becoming debt-free.

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Law Office of Ginger C. Cord, PSC
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Lexington, KY 40507

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