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Handling credit card debt before Chapter 7

Most American families carry a significant debt load. Here in Kentucky and elsewhere throughout the nation, individuals carrying credit card debt may be looking down the barrel of serious interest payments. Thankfully, there are a variety of ways to handle credit debt, from consolidation to Chapter 7 bankruptcy. 

Most financial advisors agree there is no one "right way" to handle unsecured debt like credit card debt. Generally speaking, the "best" direction depends heavily upon the individual's financial situation. Consolidation loans, for example, tend to work best for those who are able to afford higher payments month over month, and wish to pay down debt inside a fixed window of time. A consolidation loan means borrowing a sum to pay down multiple credit cards at once, hopefully paying back the loan at a significantly lower interest rate. 

Balance transfer cards are also a good choice. Many credit cards offer a set term wherein no interest is charged on the principal amount. While transferring a balance to such a card often carries a one-off fee, the result is the debtor can put a significant dent in balances owing during the interest-free window. 

Of course, not all of these options will work for every situation. For Kentucky residents facing serious debt problems, Chapter 7 bankruptcy is also a viable option. Chapter 7 allows assets to be liquidated to pay down debt, and most unsecured debts are discharged outright. This can take the pressure off a family or individual and help them on their road to financial recovery. 

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

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Phone: 859-963-2073
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