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How to start paying down credit card debt

Rising interest rates and growing credit card debt balances may create financial issues for Massachusetts residents and others in the future. While increasing debt levels are generally seen during good economic times, it is possible to have too much debt. Now may be the best time for a person to take a strong look at his or her overall financial situation.

This could include taking a look at the amount of money a person owes and how much interest is being paid on that debt. It may be possible to reduce the interest rate by transferring a balance to a new card. Those who have credit card debt may also want to create a plan to pay off the debt and stick to it. How a person chooses to pay off the debt depends on what will work best for them.

If a person needs motivation to get started, the snowball method may work best. To start, an individual pays off the card with the lowest balance and works his or her way up to the card with the highest balance. With the avalanche method, a person starts with the card that has the highest interest rate. While progress may be slower with this method, it generally saves the most money over time.

Those who are looking for debt relief may be able to find it by filing for bankruptcy. Doing so might allow an individual to have debt balances discharged quickly or reorganized to repay over time. While a bankruptcy case is ongoing, creditors generally cannot contact a debtor or take action such as foreclosing on property or repossessing property. In some cases, debtors may retain property such as homes, cars and other valuable possessions during and after a bankruptcy case.

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