How to beat credit card debt

On behalf of Bankruptcy Law Firm of Clare Casas on Tuesday, June 16, 2015.

Credit card debt can consume just about anyone. Even the most financially-wise person faced the harsh realities of the last recession in Florida, perhaps finding themselves in need of a credit card to stay afloat. Whatever the reason, paying off and eliminating the debt is a vital part of getting back on your feet.

First, do not get overwhelmed. When you have multiple cards to pay off, make sure you are at least making the minimum payment on each. But on top of that, pick at least one to pay off faster. Generally, you will want to choose which of the debts to pay off first based on two qualifications. If one of the cards has a higher interest rate than the others, target that one. Or, if one of the debts is much smaller than the others, paying of that one first will give you more money to pay of the rest. Plus, paying off a card always feels great.

Next, figure out your budget. Determine how much you are spending, both in credit and in cash, on different categories of goods. For instance, are you spending a lot on entertainment or name-brand foods? Figure out where you can cut back, and do so. That will free up more funds to pay off cards faster.

If you feel extremely crushed by the debt and can’t see a way out, there are two more options. You can consolidate the debt, using your home or other assets as collateral. If this is not an option, bankruptcy can give you a fresh start.

If you are interested in the benefits and process of filing for bankruptcy in Fort Lauderdale, an experienced lawyer can help.