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Don’t Miss Out On These Strategies To Get Out Of Debt!

The holidays are over and you may be breathing a sigh of relief—at least until the bills come.  If you have been battling high interest rates, mounting credit card debt and are struggling to pay your bills each month, bankruptcy is one possible solution.  While many people think of bankruptcy as a last resort, the process actually conveys some immediate and long-term benefits for those who are struggling with unpayable debt.

The Credit Card Cycle

When you take on credit card debt, you are not just facing payback of the original amount.  Interest is calculated on your average daily balance in most cases.  This means that every month your credit card goes unpaid, you risk even more accrued debt.  By paying only the minimum, it could take you decades to pay off your credit cards. Another problem with credit cards is that people begin to rely on having the ability to buy things for which they could not pay cash.  This means adding to the debt every time it is paid down, often to pay expenses that should be included in a monthly budget.  Some people even end up taking out cash advances on their credit cards to pay the minimum balances on other cards!

Getting Out of Credit Card Debt

Credit card debt is a vicious cycle, and once you are pulled in, it is very difficult to get out.  Experts offer some tips for reducing or eliminating your credit card debt:

  • Stop using your cards. The first step in controlling credit card debt is to stop adding to your card balances.  Some experts go so far as to advise credit card holders to cut up and throw away their cards so they are not tempted to use them.  If you choose to do this, be sure to make a photocopy of each card before you shred it so that you have the information you need.
  • Negotiate with the credit card companies. If your payments are out of control, try calling your credit card company to see if they can work with you to lower the monthly amount you must pay.
  • Use the “snowball” approach. Start by paying off the card with the lowest amount.  Once that is paid, apply that payment to your next card, and so on.  This method is powerful if used correctly.
  • File bankruptcy. If your credit card debt is simply insurmountable, you may want to consider filing bankruptcy to wipe the debt out permanently.

The attorneys at Oswalt Law Group in Phoenix are ready to help you eliminate your debt and receive a fresh financial start through bankruptcy.  Call today to find out more.    

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