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Suggestions to help eliminate credit card debt

A 2014 survey regarding the average debt load found that a typical family carries approximately $5,700 in debt. The majority of that debt is comprised of credit card debt and excludes car loans, mortgages and education loans. Many Washington families are struggling to support heavy debt and may be seeking a solution for their own financial burdens.

In order to pay down at least a portion of credit card debt, the first step in getting a handle on it is to gather all the financial statements. Calculate all current balances and corresponding interest rates. Once a clear picture emerges, there are some options. The first may be to transfer the larger balances onto a no-interest or low-interest credit card. Eliminating or reducing the cost of borrowing can make payments more manageable over time.

The consumer may also be able to negotiate a lower interest charge from lenders. Another option could be to obtain a private consumer loan. Paying off credit card debt with another loan may allow the debtor to obtain a lower interest rate while consolidating payments, thereby making the payments easier to handle. One other option would be to pay more than the minimum payment each month in order to pay down debt faster.

While these suggestions may be helpful in reducing credit card debt in many situations, others may require a different solution. Unfortunately, the financial struggles of many Washington families have simply become unmanageable. These families may benefit from considering the relief that can be obtained from a bankruptcy filing. Depending on their own unique circumstances, either a Chapter 7 or a Chapter 13 may allow a family to obtain a new start on sound financial footing.

Source: kxly.com, "Working 4 you: Get out from under credit card debt faster", Drew Reeves, Oct. 28, 2014

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