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How Tennessee residents can pay off credit card debt

Many Americans, including Tennessee residents, have been getting some shocks as they open their credit card bills after the holidays. A spending spree for Christmas can mean considerable credit card debt in the New Year. Unfortunately, this may be only adding more trouble if a cardholder is already carrying substantial debt. For any Tennessee resident who is making the decision to pay off some of that credit card debt, the following tips may help.

First, pay off the card with either the highest debt or the highest interest rate. Which one depends on how much debt has accrued. If the debt is relatively low but the interest rate is high, then pay off the other card - the one with highest debt, even if the interest rate is lower. Simply removing the most debt at once can take a big load off a debtor's shoulder. Second, pay off cards that are nearing their credit limits. Credit card companies know what debt is carried on a debtor's other cards and may decide to raise the interest rates on their own cards.

Third, transfer as many balances as possible to credit cards with zero interest. Be careful, though, and read each card's fine print first; some credit card companies require a debtor to pay off any balance transfers by a particular date and may charge interest back to the date of the first purchase. Fourth, try to secure a home equity loan. Although these can be hard to get, they can be used to pay off all credit card debt.

Finally, consider filing for bankruptcy. When credit card debt seems insurmountable, it may be time to take more extreme but perfectly legal measures. Bankruptcy is one of those options. It can offer the fresh financial start that people with credit card debts have been longing for.

Source: Fox Business, "4 Ways to Pay Off Credit-Card Debt," Tracy Byrnes, Jan. 16, 2015

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