Recent studies suggest that some six in 10 Americans are carrying some form of credit card debt, usually between $6,000 and $7,000 depending on generation. While using a credit card responsibly can lead to better credit and more financial options, some Kentucky residents know all too well the cost of carrying a balance month over month, or even year over year. A variety of strategies exist to help get Kentucky residents out of debt, from consolidation to Chapter 7 bankruptcy.
Credit cards carry notoriously high interest rates, and paying the minimum monthly payment can make little to no dent in existing debt as a result. One possible way to handle this is to consolidate all debt into a payment with a lower interest rate. Sometimes this can be done using a balance transfer card to pull multiple debts into one monthly payment, while others may benefit from using a personal loan to pay down higher-interest cards.
Paying off debt can also be an option. There are two major strategies for paying down debt: the so-called "snowball" and "avalanche" methods. Snowball requires paying down the card with the lowest balance first and proceeding through to the higher-balance cards. Avalanche, contrarily, suggests putting all resources toward paying down the card with the highest interest rate to avoid those pricey payments.
And, of course, for some people none of these methods will be sufficient. Some Kentucky residents carry larger balances that could require a more specific solution. Thankfully, Chapter 7 bankruptcy is a process that can be assisted by an experienced attorney to wipe out and pay down existing debts, clearing the slate for a more promising financial future.