With the American credit card debt topping $1 trillion this year, many families are feeling the strain of outstanding payments and overdrawn accounts. Thankfully, there are many ways Kentucky residents can pay down their credit card debt or find alternate solutions to their debt struggles. For challenging cases, Chapter 7 bankruptcy can also be an option to help clear away existing debt woes.
The first step towards handling credit card debt is taking a full accounting of existing debt and associated interest. Ensuring minimum payments are being paid on time is a critical part of whittling down debt, but writing down balances and interest rates can be a helpful way to start planning a budget. Focusing on a total debt amount can be a daunting prospect, so breaking down debt into manageable sizes can also be helpful in getting started.
Some experts suggest paying down the credit card with the highest interest rate first, which can help to reduce monthly payments across the board. Others say the opposite -- that paying down the card with the lowest balance first can count as a "quick win" and act as encouragement to keep going on a positive financial track. Another useful tip is to consider paying towards accrued debt twice a month rather than once. This can help to reduce principal balances as well as save on interest.
Of course, this isn't feasible for every Kentucky resident, as some families are in serious debt trouble and quick fixes simply will not help. For these individuals and families, Chapter 7 bankruptcy can be a viable option to reduce and even forgive certain unsecured debts. With the help of a qualified bankruptcy attorney, credit card debt can become a thing of the past.