What Are the Best Options for Dealing With Credit Card Debts?

 Posted on March 03, 2022 in Credit Card Debt

Most Americans have some form of debt, and in many cases, a person’s most significant debts will be the balances on credit cards. While these debts may be manageable, and a person may be able to make ongoing payments as they work to pay off the balances owed, there are some situations where paying off these debts may be difficult or impossible. In cases where a person or family is experiencing financial difficulties and struggling to make credit card payments while also paying other debts and covering regular expenses, they will want to determine their options for debt relief. 

Options for Paying Off, Reducing, or Eliminating Credit Card Debts

When a person owes large amounts of money to credit card companies and other creditors, they may be able to take steps to achieve financial stability by reducing their payments or eliminating debts altogether. Some options for doing so include:

• Effective payment strategies - By taking stock of their financial situation and determining whether they can reduce expenses, a person may be able to determine how to make affordable payments that will allow them to pay off what is owed. By making payments that are larger than the minimum amount owed each month, they can make a dent in the total balance and work toward eliminating their debts. However, this may not be an option for those who are already struggling financially or who have debts that are too large to pay off in this manner.

• Debt consolidation - If a person is required to make payments toward multiple credit cards and other types of debts, they may be able to reduce the total amount they pay each month by combining multiple accounts. This may be done by transferring balances to a new credit card that offers a low introductory interest rate. Other types of loans may be available, such as a second mortgage or home equity line of credit on a person’s home. However, these options are not always available, and the burdens that additional loans may place on a person and their family could lead to financial difficulties in the future.

• Debt settlement - Debtors may be able to contact credit card companies and negotiate a settlement, allowing them to pay off their debts for less than the total amount owed. However, these options are not always available, and if a person is already struggling financially, they may not have the resources to make a lump sum payment. Debtors should also beware of companies that offer debt settlement programs, since these may be scams, and even after a person makes payments to a company to settle their debts, creditors may still pursue judgments and attempt to collect the debts that are owed.

• Bankruptcy - While the alternatives discussed above may offer some relief, they will often take time to fully pay off the amount a person owes, and they may not be effective solutions if a family has experienced hardship that has made it impossible to make payments right away. Filing for bankruptcy is often the best option in this situation, since it will place an automatic stay on creditors preventing them from attempting to collect debts, and it will allow certain types of debts to be eliminated completely.

Contact Our San Antonio Debt Relief Attorney

If you are struggling with debts, the Law Offices of Chance M. McGhee can advise you of your options. We can help you determine whether bankruptcy is the right choice for you or whether other alternatives may be preferable. We will make sure you follow the correct procedures when filing for bankruptcy or pursuing other forms of debt relief, and we will advocate on your behalf to ensure that you can regain financial stability as soon as possible. Contact our Kerrville bankruptcy lawyer at 210-342-3400 to set up a complimentary, confidential consultation.

Sources:

https://www.nerdwallet.com/article/finance/credit-card-debt

https://www.forbes.com/advisor/credit-cards/consolidate-credit-card-debt/

https://www.consumer.ftc.gov/articles/0145-settling-credit-card-debt