Credit card debt in the United States reached a record high in Dec. 2018, making it one of the most pressing financial issues facing everyday Americans. What many Kentucky residents might not know is that there are several ways of reducing the interest on a credit card, making it easier to pay down existing debt. This can help to avoid more involved debt management options like consolidation or Chapter 7 bankruptcy.
Many financial experts agree that the easiest way to get an interest rate on a credit card -- typically somewhere around 19.5% per annum -- lowered to a more reasonable amount is simply to ask. A recent survey suggests that of everyone who reaches out to their credit card company to negotiate a lower rate, some 81% received one. Unfortunately, only one in five people make such requests.
The survey continued on to note that cardholders who asked to remove annual fees, up their credit limit or waive late fees were often very successful. There are a variety of ways for individuals to approach such negotiations, but the most effective is often to come with another credit card offer that features a lower rate. In an effort to retain business, many companies will come to the bargaining table.
Of course, this solution is not effective for every Kentucky resident. In some cases, debt has become totally unmanageable and must be handled differently. In these cases, Chapter 7 bankruptcy is often a wise financial move. With the help of an attorney and the bankruptcy court, assets are liquidated to pay down debt, and other unsecured debts are typically discharged the court.