Which Credit Card Debt Solution Works Best for You?
It is not just your imagination that your credit card debt problems, and everyone else’s, seem to be getting worse. Consumers in the United States owe a total of approximately one trillion dollars in credit card debt, and too much of it is yours. Like so many others in your situation, you spent the summer swiping your credit card as an antidote to your children’s summer boredom, but now it is time to pay up. The only problem is that your credit card debt is sky high, especially relative to your income. The first step toward finishing out the year with less credit card debt than you currently have is to contact a Jupiter debt lawyer.
Making a Snowball in Florida
There is not much snow in Florida, unless you count the kind that will get you felony charges if you try to use it to pay down debt. Even a Floridian can understand the idea of the debt snowball method, though. Let’s say that you have multiple credit cards where you carry a balance, but you only have a little bit of money in your budget toward making more than the minimum payments on them.
The snowball method conceives of debt repayment as a snowball gaining size and speed as it rolls down a hill. There are not too many hills in Florida, but to get an idea of this phenomenon, go to Greynolds Park, where there is one hill that kids like to roll down. In the snowball method of debt repayment, you put your extra money toward the smallest credit card balance while making the minimum payments on the other cards, and eventually it will get paid off. Once that happens, you start paying the extra money toward the card with the next lowest balance, and so on. This method takes time, but you will see your debts getting smaller and your credit score improving.
Trading in Your Credit Card Debt for Less Scary Debt
A debt consolidation loan can make your debt disappear quickly. You will have a new debt, of about the same amount as your previous credit card balance, in its place, but it will be much less daunting. Debt consolidation loans are personal loans with a much lower interest rate than a credit card.
Settling Your Debts With the Credit Card Company
Another option is to contact the credit card company and request a debt settlement. When you settle your debts, you pay a portion of the amount you owe, and the creditor forgives the remaining amount. The good news about debt settlement is that it makes your credit card debt go away, but the bad news is that it lowers your credit score.
Work With a Debt Lawyer About Recovering From Credit Card Debt
A South Florida debt lawyer can help you strategize about how to get the maximum relief from credit card debt with the minimum damage to your credit score. Contact Nowack & Olson, PLLC in Jupiter, Florida to discuss your case.