Some people in debt seem to think they are alone; however, that is far from reality. According to recent data, Americans totaled more than $1 trillion in unpaid credit card balances in 2017, the highest it’s been since the Great Recession.
Luckily, there is light at the end of the tunnel for those looking to get their finances back on track.
Practical methods to get out of debt
These are some strategies people can use:
- Make a plan: Some people tend to make “in the moment” purchases, even if they don’t have the money to do so. By implementing a strategy of budgeting, goal setting and rewards, they can set themselves up to lower their debt more quickly.
- Create a budget: To make consistent and timely payments, many consumers only have a couple of options. Those include spending less or earning more. Obtaining extra income may not be feasible for some, but most people can find ways to reduce their spending. They can do so by limiting their credit card use, setting aside disposable income and finding ways to decrease living expenses.
- Utilize tax refunds: Some people like to treat themselves when they get their tax refund. But those with high amounts of debt may want to put that extra cash down on their credit cards, which could help them avoid paying higher interest rates.
- Prioritize cards with high-interest rates: If consumers have cards with high-interest rates, they may want to work on paying those down first. Doing so can make it easier to get out of debt in the long run.
Repayment is possible
High credit card debt can reduce the quality of life for those impacted by it. Luckily, there are methods available for getting out. Those struggling with high credit card debt may want to contact an experienced bankruptcy attorney. They can assist consumers in examing their options and help them create a plan that fits their financial circumstances.
