Many Americans are keenly aware of the prevalence of credit card debt in modern society. In fact, most families in Kentucky carry some form of credit card debt, sometimes into the tens of thousands of dollars. There are a variety of ways to tackle debt of this nature, including filing for Chapter 7 bankruptcy, but it is always worth looking into multiple options before deciding on a course of action that best suits the borrower.
For example, a balance transfer is an underused form of debt consolidation that only some 38 percent of responders to a survey have actually attempted. A balance transfer involves moving the balance on one or more high-interest cards to a card with a lower interest rate, or one which offers a zero % interest rate for a set period. The idea is to transfer the balances onto such a card and then pay down as much debt as possible while not paying interest.
In an ideal situation, monthly payments made on such a card will be high enough to eliminate the remaining balance before interest is reapplied. Even if they are not, the savings applied can make a big difference when interest is not being paid for a period of time. The most important part of a balance transfer plan is to avoid charging more onto the card from which the balance was transferred, or else even more debt can be accrued.
Debt of any stripe can be a burden to a Kentucky family. This is why so many options exist to handle debt before it becomes unmanageable. In the case that it does reach this point, Chapter 7 bankruptcy is also a viable option. Filing for bankruptcy allows assets to be liquidated to pay down debt, and in some cases the court can even choose to forgive unsecured debts like credit cards.