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Four Ways to Manage Credit Card Debt

 Posted on October 21,2014 in San Antonio Bankruptcy Attorney

credit card debt Texas, San Antonio bankruptcy lawyerCredit cards are a double-edged financial sword. Aside from their obvious benefits and functions, many banks offer points systems and other rewards for using their cards. Many Americans, however, are all too familiar with the possible risks associated with credit card use—especially when one falls behind on payments.

Nearly every American has a credit card--and likely more than one. According to TIME, the overall amount of debt incurred by Americans has actually been in decline. While this is great news for some, others are still facing the challenge of keeping up with payments, dealing with harassing creditor calls, and possibly even considering bankruptcy.

Solving debt problems is about active financial planning and making smart choices. Here are four helpful ways to regain control of credit card debt:

1. Make Monthly Payments, Meeting or Exceeding the Minimum Payment

What is the most basic solution to solving debt? Paying it off. Unfortunately, resolving debt is not always that simple. Debtors should make every effort to organize their finances and make sure enough money is available to meet those credit card payments every month. Late payments result in penalties and harm an overall credit score.

While purchasing an expensive item and only having to pay a small amount each month is alluring, making only minimum payments is not always the best choice. If possible, it is always a great idea to try to pay more than the minimum—sometimes twice as much.

Aim for minimum payments, and try to exceed them when possible.

2. Focus on High-Interest Debt

It is often surprising to many Americans how quickly credit card interest can add up. This is why it is so important to prioritize payments for cards with the highest interest.

By paying off high-interest cards first and continuing to make minimum payments on the low-interest ones, overall debt levels become much easier to control.

3. Limit Credit Card Use and Spend Wisely

Depending on one's financial and living situation, this may be difficult. When attempting to solve a serious financial problem, limiting credit card use while paying them off is critical for lowering overall debt. Again, many people rely on their credit cards for day-to-day living, so this can be a challenge.

Try to pay for items with cash first. Only use credit cards for necessities.

4. Save Money

This is another challenge for those in debt, but is important. While every attempt should be made to pay down credit cards, savings should not be neglected; this is key to establishing long-term monetary stability. After paying off high-interest cards, not having any cash saved away can often cause the debt to come back as the credit cards become an easy way to make purchases.

Prioritize paying off debt, but be conscious about the necessity of saving money.

If your credit card debt has become too much to handle, we may have a solution. Bankruptcy, for many Americans, is not only a way out of debt but is also a path to financial success and independence. As an experienced San Antonio, Texas bankruptcy attorney, Chance M. McGhee has helped clients for the past 20 years solve their financial challenges. Call the Law Offices of Chance M. McGhee today at 210-342-3400 for a free consultation.

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