March 21 marked national Credit Card Reduction Day, which is an important date for many American families who are now carrying a record amount of consumer debt. For residents of Kentucky, the prospect of paying down credit card debt can be a daunting one, but it can be buoying to remember there are a variety of options available for consumers to work toward lowering their debt. Even for the most extreme cases, a Chapter 7 bankruptcy filing can be used to wipe the slate clean of accrued debt that can hamper a family's financial health.
One of the most effective ways of beginning the process of paying down credit debt is by utilizing a balance transfer. This means taking the balance from one card and transferring it to a new card with a lower interest rate, or preferably one with a zero-interest introductory offer. This can allow an individual to consolidate debt onto one card and make a significant dent in the outstanding balance during the zero-interest period.
Another option is a personal loan. While this option may not be available to everyone, it is possible to pay down existing credit debt with a loan that requires a considerably lower interest return. According to the Federal Reserve, the average personal loan interest rate hovers around 10 percent per annum, as compared to the average 18 percent on a credit card.
Of course, not all of these options will work for every situation, and some Kentucky residents may find themselves hamstrung by unmanageable debt. In these cases, seeking out the support of a bankruptcy attorney in filing for Chapter 7 bankruptcy can be one of the most financially intelligent moves to make. Chapter 7 typically liquidates nonexempt assets and can be the first step on the road back to financial security.