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Develop a plan to eliminate credit card debt – no matter what age

On Behalf of | Sep 7, 2017 | Credit Card Debt, Firm News

Many young adults in Florida and around the country are deluged with credit card offers when they graduate from college or start a new job. While many may use them to build up a credit history and pay them off each month, others may quickly find it difficult to eliminate the balances. Before getting trapped in a cycle of credit card debt, personal finance experts offer suggestions on how to reduce debt, avoid interest payments and increase credit scores.

Having a defined plan of action is important. Consumers should list the balances on all credit cards and determine where to focus payments first. Many target the card with the highest balance as well as the highest interest rate. When that particular card balance is eliminated, then move on to the next card.  For some, however, it is more encouraging to pay off the card with the smallest balance.

Cutting back on spending will create more money in a budget to apply to credit card debt. However, drastic cuts can seem too restrictive and someone may give up on saving money too quickly. It is likely more effective to cut back on a few areas, rather than across the board. Some consumers decide to take a side job or work additional hours for some extra income.

Consumers of any age may feel that their credit card debt seem insurmountable. A Florida bankruptcy attorney can help individuals work toward getting their finances back on track. An experienced attorney will evaluate a client’s specific situation and develop a plan of action specifically designed for his or her needs.

Source: The Seattle Times, “Young and overspent? How to tackle credit-card debt“, Claire Tsosie, Sept. 2, 2017

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