Credit card debt is among the most expensive and insidious types of debt facing Americans today. The ability to continue charging a credit card while paying only minimum monthly payments can lead to a serious debt spiral, as some Kentucky families already know. However, there are a variety of steps that can be taken to reduce debt, and for those in untenable debt situations, Chapter 7 bankruptcy remains a powerful option as well.
It may seem counterintuitive when trying to pay down credit card debt to also allocate funds to savings, but some experts believe a lack of savings will also perpetuate the debt problem. Without savings, any emergency payment required, be it a medical emergency, vehicle malfunction or any other unforeseen issue, will have to be taken care of on a credit card. A good way to start saving is to put away the credit cards for a while and use only what is in bank accounts to pay for goods and services. This will help to gain perspective on spending habits.
Many Americans view credit cards as an extension of their pay checks. If an individual finds him or herself relying on a credit card to make ends meet, the balance may never go down. Again, developing a strong and sensible budget is a good way to start taking stock of monthly spending and seeing where corners can be cut.
Of course, for some Kentucky residents, the problem of credit card debt has spiraled beyond the purview of the above suggestions, For those individuals, Chapter 7 bankruptcy could be the answer. Nonexempt assets can be liquidated to pay down creditors, and the court typically discharges unsecured debt at the conclusion of the bankruptcy process. The support of a bankruptcy attorney can be invaluable during this time to help guide the way.