When you spend a little here and a little there, credit card debt can add up quickly. For many people in Fort Lauderdale, and throughout Florida, this type of debt can result in serious financial challenges. While tackling this debt can be a crucial step in regaining control of your finances, it can be difficult to decide where to start. There are numerous options available, however, which can help you get rid of your credit card debt.
One of the most common ways for handling credit card debt is by paying it down yourself. When doing this, it is often recommended to attack one card at a time, putting all of your excess funds towards that debt. However, it is important to continue making the minimum payments on your other cards in order to avoid late fees and other penalties. Fox Business reports that it is important to prioritize your credit card debts before starting this process. The purpose of this is two fold. First, it allows you to get an accurate assessment of what you owe, and to whom. Second, you can use this as a plan for which debts to pay off first. Some suggest paying off your smallest debts first, while others advise going after your most sizeable debts first.
Depending on your circumstances, you may consider taking out a home equity loan in order to pay off your credit card debts. Doing this may allow you to put a significant dent in your credit card debts, or take them out altogether. Unlike credit card debt, the debt that you would acquire through this type of loan may not have a damaging effect on your credit score.
Another option that you may consider is filing for bankruptcy. Before doing so, however, it is important to understand that this is a serious step. Both Chapter 13 and Chapter 7 bankruptcy filings have certain requirements, such as completing a payment plan or liquidating certain assets. Furthermore, seeking bankruptcy protection can have a serious impact on your credit.
This post has provided an overview of options for eliminating your credit card debt. It is important to remember that these suggestions may not fit your situation or needs. Therefore, this should be considered only as general information and not be taken as professional legal advice.