Concluding our three-part blog 6 Tips That Can Help You Pay Off Credit Card Debt, here are some final tips that borrowers should keep in mind when they are ready to start seriously paying down their credit card debt.
Tip 5: Dip into your savings.
Your savings should be considered to be a financial safety net that you only use when an emergency arises. However, if you have a chunk of money in your savings and are facing high interest rates on your credit card debt, the money in your savings is not being used as effectively as it should be (given the fact that most savings accounts are associated with relatively low interest rates when compared to the interest rates of credit cards). In other words, having money in your savings account rather than using this money to pay down your credit card debt may actually be costing you more money.
In such cases, it can be a good idea to take a portion of the money in your savings to pay down your credit card debt. Don’t necessarily, however, clear out your savings account, as you should leave a financial buffer in this account in case an unexpected emergency arises. Without this buffer, you may end up needing to rely on your credit cards again, which can reverse any progress you may have made in paying down this debt.
Tip 6: When your credit card debt is too massive for you to get a handle on, consider filing for bankruptcy to discharge this debt.
As you evaluate your credit card debt, your income and your other debt obligations, you should take the time to assess whether you will realistically have the funds to pay off your credit card debt or whether you will end up getting yourself buried in deeper debt in the near future. The fact is that, in some cases, borrowers may be too indebted to too many creditors and they may not have enough income to make even the minimum payments on all of their current debt.
When this is the case, borrowers should be aware that:
- They have powerful options for debt relief.
- Filing for bankruptcy can be effective at discharging their credit card debt (as well as other debt like, for instance, mortgage debt or medical bill-related debt).
- Colorado Bankruptcy Lawyer Jon B. Clarke is here to help them resolve their financial issues so they can get a fresh start and look towards their future.
Colorado Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our Clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible.
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.