Credit card debt can make you feel like you’re stuck in an impossible bind. Interest rates are high, and you could find that it’s nearly impossible to make headway into paying down what you owe.
There are options to help with this situation. Some are to:
- Look into consolidating your debts
- Try zero-interest credit cards
- Try the snowball method
- Enter into bankruptcy
Each of these options has benefits. For example, consolidating your debts can help you reduce your monthly payment and interest rates, so you can pay down what you owe more quickly. Zero-interest credit cards allow you to transfer what you owe on cards with high interest, so you can pay down the principal balance more quickly.
The snowball method asks you to pay your minimum payments each month, adding a little extra to a single debt until it is paid off in full. Then, you take what you pay on that debt and roll it into another debt’s payment. This allows you to pay off what you owe more quickly.
Finally, there is bankruptcy. Many people fear bankruptcy, but it can be a great option. If you can’t pay back what you owe, have lost your job or just can’t keep up with your payments, it’s time to look into bankruptcy. Chapter 7 bankruptcy allows you to liquidate some assets (and sometimes none, depending on your situation) in exchange for discharging your qualifying debts. If your debts are primarily unsecured, then they may be able to be discharged, so you can move on with a better financial situation in the future.
Our website has more on bankruptcy and other options that may help you get your finances back on track.