Regaining control over credit card debt

March 20, 2017 Mark

On behalf of Gregersen Law posted in bankruptcy on Monday, March 20, 2017.

Many Utah residents have high amounts of credit card debt. Like many of these individuals, you may struggle to meet your financial obligations because of this debt. We wanted to take a moment to provide you with some things that you can do to regain control over this debt, and help you build a better financial future.

Think about why you are using your cards

Are you using your cards because you do not have cash to buy the things you need, or are you buying something that you plan on paying for later? You have to think very carefully about your spending habits, and try to use your cards only when absolutely necessary. If you use them all the time, you might incur significant debts that you cannot repay at the end of the month.

Because of the high interest rates on the cards, any balance that you carry over each month will only make your situation worse. By limiting the situations in which you use credit cards, you can better address the outstanding debts that you may have.

Take on the most expensive debts first

If you have multiple cards, look at the balances and interest rates for each card. You should identify the highest rates and highest balances, and make an effort to attack those first. You should pay as much as you can afford, even if it is over the minimum payment amount.

On cards with smaller balances or lower interest rates, you should try to stick to the monthly minimum until the larger, more expensive debts are repaid. This helps limit the amount of interest that will accumulate, and give you a better chance of repaying these debts faster.

Are you making a dent in your balance?

Even if you follow these steps to the best of your ability, you may find that you are not seeing your balances decrease at all. If you are struggling to make ends meet because of high credit card debt, you may wish to consider filing for bankruptcy.

In most cases, credit card debt is eliminated through bankruptcy. You will be able to effectively deal with your financial strain and the stress this is causing you. It will allow you to experience a more positive financial future.

To learn if bankruptcy is right for you, you should contact a bankruptcy attorney to learn more about your options. An attorney will be able to explain how bankruptcy will impact you, and work together with you to develop a plan that works for your situation.