Financial stability can be elusive, and yet it is achievable for most people if they follow the advice of professionals. For Florida residents, credit card debt can be a source of stress and impair a family’s or individual’s ability to deal with other debts. While each situation may be different, there are smart ways for almost everyone to reduce and deal with credit card debt.
One tip most people should apply is to pay the most toward the card with the highest interest rate. Interest rates can vary greatly and affect the overall amount a person pays. The national average is reported to be 15.2 percent. While this way is a money-saver over time, experts warn that it could still take a long time to pay off all credit cards by employing this approach.
For those who like to see real results and progress when they open a bill, the strategy of paying off the card with the smallest balance may be the most rewarding. Once one card is paid off, that money can be applied to the next smallest credit card balance. Regardless of which method feels best for each person’s situation, ensuring that the minimum payment is made on each and every card is imperative to keeping those balances from negatively affecting a person’s credit score.
When credit card debt seems overwhelming, it may take small measures to feel like progress is being made. For those who are unable to make those minimum payments or feel that the above strategies may not yield the results they need, there are other options. In Florida, many have found that filing for bankruptcy has been a viable alternative, as credit card debt can be discharged and the right kind of bankruptcy can help a family or individual move closer to a financially secure future.
Source: usnews.com, “3 Strategies to Pay Off Your Credit Cards“, Geoff Williams, Oct. 20, 2014