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Chattanooga residents trying to pay down credit card debt

People in Chattanooga have apparently been trying to pay off their credit cards over the past few years since the economic downturn began in 2008. These attempts to pay off credit card debt have not gone unnoticed by credit card companies. Many of them are trying to get consumers back into the credit card habit with new zero-interest credit cards.

Offers for zero-interest credit cards appear to be on the rise again, and it may be tempting for consumers to use these cards as a way to pay down debts. However, consumers must be careful when accepting these offers. It may be enticing to transfer an old balance to a new, low-rate card, but often credit card companies will charge a fee to transfer a balance. Sometimes, rather than carrying no interest, these supposedly zero-interest cards merely defer the interest until later. Also, by applying for a credit card, a consumer's credit score could be hurt for a time. This is why consumers should review various means of reducing debt before committing to one.

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A Chapter 13 bankruptcy is a very useful way to get out of from under a large load of debt, including credit card debt. After five years of making small monthly payments to a trustee, a credit card debt is completely discharged. Many times, debtors end up paying significantly less of those debts back by going through a Chapter 13 bankruptcy than by any other means of consolidation. Best of all, it is completely backed by the judicial system, which means that collection companies cannot come back to try and hound a person again for those debts.

Bankruptcy can be a positive first step toward financial recovery. Though many find it difficult to take that first step, it is often the best way to get a fresh financial start.

Source: TimesFreePress.com, "Personal Finance: Zero-interest credit cards now making a comeback," Oct. 3, 2012

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
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