Law Office of Ginger C. Cord, PSC
Free Initial Consultation

Paying down credit card debt before Chapter 7

According to some studies, the average household in America carries some $5,700 in credit card debt. This type of debt, while unsecured and therefore eligible for discharge in Chapter 7 bankruptcy filings, can be one of the most difficult types of debt to retire. Thankfully, there are a variety of strategies that can be employed by Kentucky residents to pay down credit debt before considering bankruptcy. 

Balance transfer cards are one of the most popular tools for lowering credit card debt. They work by transferring debt from a high-interest card to one with lower interest. In some cases, the lower-interest card may include the option for a grace period of up to 21 months interest-free, allowing all payments to directly bring down the principal rather than being eaten up by interest charges. However, transfer fees can apply when moving balances between cards. 

Consolidation loans are another option, as long as they are accredited, meaning they are vetted by the National Foundation for Credit Counseling. In both cases, it is important to maintain discipline and a strict budget based on household earnings to ensure the balance does not keep rising. Above all, many economists recommend avoiding debt settlement companies, as their practices can seriously impact credit scores. 

Of course, for some Kentucky families, these options simply are not enough to counter existing credit card debt. In these cases, a Chapter 7 filing may be the best solution to a debt problem. An experienced bankruptcy attorney can help get unsecured debt like credit cards discharged by the court, allowing borrowers a "clean slate" to focus their efforts on regaining financial security. 

No Comments

Leave a comment
Comment Information
Email Us For A Response

How May I Assist You?

How May I Assist You?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

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
Fax: 859-254-2192
Lexington Law Office Map