Paying off debt can be struggle for many Florida residents and others around the country. Many individuals carry a significant amount of credit card debt because they are able to pay only the minimum due each month. However, many consumers have goals to significantly reduce or even eliminate their credit card balances. Financial experts offer some suggestions on how to accomplish those goals.
Most plans that focus on eliminating credit card debt require drastic cuts in spending levels. However, analysts from a popular financial services website recently offered tips on how to reduce card balances without major cuts in spending. One suggestion is to take advantage of balance transfers. Moving balances from a high interest rate card to one with a promotional interest rate can offer meaningful savings. There may be a fee associated with the transfer; however, it would be offset by the reduced interest payments being made.
Another strategy is to ask the credit card company for a lower interest rate. Any savings in interest payments each month can be applied to pay off balances. A third option is to apply for a home equity line of credit, or HELOC. Credit card interest rates are considerably higher than for a HELOC, and someone could pay off balances faster by having extra cash flow. Some are hesitant to use this option since it does involve using equity in a person’s home.
Credit cards can be useful and convenient for many Florida consumers. However, credit card debt can become overwhelming. A respected bankruptcy attorney can help those in trouble develop a plan to get them back on track financially.
Source: fool.com, “3 Ways to Eliminate Credit Card Debt Faster Without Cutting Your Spending“, Nathan Hamilton, Sept. 12, 2017