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Paying down credit debt before Chapter 7

Debt is one of the most ubiquitous financial challenges facing consumers every day. Here in Kentucky and elsewhere in the nation, credit card debt has reached an all-time high, with residents facing the consequences of high interest payments and sometimes even debt collection. However, there are multiple ways to cut down on debt, from consolidation to budgeting to a Chapter 7 bankruptcy filing. 

The first step in any debt repayment is to come up with a budgeting plan. The nature of this budget should take into consideration where overspending is occurring, and steps must be taken to curb this trend. For some people, this means limiting money spent on impulse shopping or frequent nights out. For others, lowering debt could require a considerably more involved plan. 

Some people have found success with the so-called "snowball" method, in which the card with the lowest balance is paid off first, followed by the second-lowest and so on. For others, the "avalanche" method of tackling the largest balance first is a better option. In some cases, transferring multiple smaller balances onto a single, lower-interest card is a great way to make a dent in a large debt sum. 

Of course, not all Kentucky residents are in the financial position to budget credit debt away. For these people, Chapter 7 bankruptcy could be a viable option. Filing for Chapter 7 means liquidating assets to pay down creditors. In some cases, certain types of debt can be wiped away altogether. This can create breathing room for an individual or family in a challenging financial situation. 

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

Toll Free: 800-762-6916
Phone: 859-963-2073
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