Credit card debt can impact every area of a person’s life and finances. There are many solutions touted for those looking to take back control. However, Florida residents should know the difference between responsible and logical ways to handle overwhelming credit card debt and solutions that can result in deeper financial trouble.
Some credit card companies will dangle the enticing option of balance transfers as a means of getting a 0 percent interest rate to pay down a balance. Some of these offers are only for a short amount of time. This means failure to pay off the debt in the allotted special percentage offer time frame could result in deeper debt that is even more difficult to pay off. Car title loans are another option that can result in a lien on a car and even more debt.
For some, credit card debt might drive them to loans using their homes as collateral. This impacts the equity in the home. The money gained can do little to whittle away debt. Payday loan places are also to be avoided, as the interest rates can be staggering.
For those swamped with credit card debt and desperate to make real progress toward financial security, bankruptcy may be an option that deserves to be considered. Many may not realize that bankruptcy can result in credit card debt being discharged. For those in Florida looking to move forward, discharging credit card debt can help free up funds to allow the payment of more important bills, such as mortgages or car payments.
Source: mainstreet.com, “Wrong Ways Consumers Choose to Pay off Credit Card Debt“, Ellen Chang, May 19, 2015