Far too many people in Illinois and elsewhere depend on their credit cards to survive. Because of this, credit card debt is a major problem in the United States right now. It is believed that most households carry balances on credit cards. What can be done? How can one wipe out credit card debt?
According to a recently published article, there are a few different ways a person can pay off or get rid of credit card debt. The first is by using all disposable income to pay down the debt. This takes a lot of effort and requires discipline in sticking to a strict budget. It can work, if balances are low enough to be paid off fairly quickly. If accounts have high interest rates, this may not work, as interest will just continue to grow despite the efforts to pay down the balance.
Another option is to consider consolidation. By consolidating debt into one loan, one may achieve a lower interest rate and only have to worry about one bill instead of many. The down side to this is that there is still interest to be paid, and it can lower one’s credit rating.
Finally, the last option to discuss is bankruptcy. While not usually one’s first choice, it is an effective way to wipe out credit card debt. With a Chapter 7 filing, such debts can be completely cleared from one’s record. With a Chapter 13 filing, one may achieve an affordable payment schedule without the added interest. There are pros and cons to pursuing bankruptcy, but for some people, it is the right fit.
Credit card debt can really weigh a person down. When it becomes too much, it is okay to look at all the debt relief options out there that are available. Depending on the details of one’s specific situation, some options will be better than others. An experienced attorney can help Illinois residents who are struggling with credit card debt find the best debt resolution methods for their specific needs.
Source: credit.com, “5 Ways You Can Erase Your Credit Card Debt“, Andrew Pentis, May 1, 2018