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How Tennessee residents can cut down credit card debt

Overwhelming debt can seem like a dark cloud over one's head, and the pressure to pay it all off can feel like financial suffocation when there simply is not enough money. Credit card debt in particular seems to plague many Americans. According to a Bankrate.com study, one of four Americans has more credit card debt than savings.

In Chattanooga County and elsewhere in the country, getting rid of credit card debt can be accomplished by using a few simple tactics. An obvious one is to stop acquiring debt, including taking on new credit cards as a means to make a fresh financial start. Even with a new card with a lower interest rate, money still goes out the window in the form of monthly interest.

Second, pay more than the minimum balance. Paying just the minimum or just interest will never make the card holder debt free.

Third, although cutting up the credit cards may seem crude, it is the easiest way to avoid using them. Canceling a credit card may seem decisive, but a card holder is responsible for the card as long as it has a balance. Also, canceling a card with a balance can hurt the holder's credit score.

Fourth, use the so-called snowball effect, that is, pay off the lower balances first. This is fairly easy to do and yields faster results. Other viable options for paying off credit card debt include using one's tax refund, setting up an emergency fund so that the credit card doesn't have to be used in an urgent situation and living within one's means.

If, despite all efforts, credit card debt gets out of hand, filing for bankruptcy might be considered. Filing for bankruptcy offers viable options for debtors to legally, effectively and efficiently pay off their debt and clean the slate.

If filing seems to be the only answer, the guidance of an experienced legal professional is invaluable. It is important to understand the process and how it will affect the individual in the present and the future. This can help them make a well informed decision while also protecting their rights and interests.

Source: Spirit Newspapers, "Still Looking for a New Year's Resolution? How About Paying Down Your Credit Card Debt Once and for All," Dominique Jenkins, Jan. 22, 2014

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

Phone: 423-954-7180
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Fax: 423-624-0509
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