If you are like many people in Tennessee, and throughout the U.S., who are struggling with debt, it is likely that credit card balances contribute to your financial difficulties. According to Nasdaq.com, approximately one out of every three adults in the U.S. reported that their households carry credit card debt from one month to the next in 2014. Dealing with this type of debt may seem like an insurmountable challenge. However, there are a number of options available, which may help you to eliminate your credit card debt.
One method for getting rid of your credit card debt is to pay it off, bit by bit. Many experts recommend targeting one card at a time to pay off. Some choose to attack their card with the highest balance first, while others choose to first go after their lowest balance. Regardless of which card you decide to pay off first, you should put as much of your disposable income toward paying off that balance as possible. It is important to continue making the minimum payments on your other cards, however, to avoid late fees and other penalties.
Depending on your circumstances, working with a debt settlement company may be a viable option for eliminating your credit card debt. According the Federal Trade Commission, companies that offer debt settlement programs will work with your creditors to negotiate a settlement. This typically involves you making a lump sum payment that is less than your full balance to resolve your debt. Often, these companies will require you to make payments into an account with them each month while your settlement is being negotiated.
Filing for bankruptcy may also provide much needed relief from your credit card debt. In a Chapter 7 bankruptcy filing, all, or a portion, of your credit card debt may be discharged. However, some of your property and assets may be liquidated and applied towards your debts.
While this post has provided an overview of credit card debt elimination options, it is important to keep in mind that each case is unique. As such, this should be considered only as general information and not be taken as legal advice.