The Law Offices of Kenneth E. Lindauer
Call today for free initial consultation

Options for paying down credit card bills

Massachusetts residents who want to pay down their credit card debts have multiple options. Ultimately, an individual needs to commit to paying more per month than their minimum payment to make their balances go down. They also need to decide if they want a strategy that's easy to stick to or a plan that allows them to pay the least amount of interest.

With the snowball method of repaying credit card debt, an individual will focus on paying the smallest balances off first. Minimum payments are made on all remaining debt balances. Once the card with the lowest balance is paid off, the card with the next smallest remaining balance is paid off. This is repeated until all the balances are paid off. The main benefit to this method is that a person sees progress right away as opposed to the end of the debt repayment process.

The avalanche method has a person pay the balance with the largest annual interest rate first. This method is preferable for those who want to save the most money while paying off their debt balances. It may also be ideal for those who are patient or got into debt because of a singular life event that may not occur again.

Those who are seeking debt relief may find that filing for bankruptcy is in their best interests. Bankruptcy can make it possible to reorganize or discharge debts. Creditors generally cannot sue debtors or take other actions while a bankruptcy case is pending. Repayment periods in a Chapter 13 case may be three or five years. A bankruptcy lawyer could help a debtor through the process.

No Comments

Leave a comment
Comment Information