Does it feel like your credit card debt is taking over your life? When you first applied for those credit cards, you may have wanted to focus on building your credit, but situations could have occurred that required you to use them more often without paying back the full amount as quickly as you anticipated. After calculating the amount you have spent on each card, you may have realized you are dealing with thousands of dollars in debt. You could be struggling to pay these cards off, especially if there are extremely high interest rates being charged each week. If you want to get out of debt so that you can stop stressing and feeling overwhelmed, there are two separate things you can do that can help you out.
Start Paying Off Cards With the Lowest Balance First
It may seem like an impossible task to pay each credit card off. You may have chosen to pay only the minimum amount due each month just to stay afloat. There is a simple technique you can try to help pay things off a bit quicker. While making the minimum payment on all of your other credit cards, start paying more than the minimum on the card with that has the lowest balance. You may not be able to pay it in full, but putting $50 or $100 on that card instead of the minimum payment of $25 or $30 would help you reach your goal of paying it off faster.
Once you have paid off one card, you will no longer have to worry about making the minimum monthly payment for that card, and that means you will have a few extra dollars that you can spend paying off another card. It may still take several months for you to get just one card paid off if the balance is high, but you will still be making some progress.
File Chapter 7 Bankruptcy For a Fresh Start
If your debt continues spiraling out of control and you are constantly getting harassed by creditors who want you to pay what you owe right away, filing Chapter 7 bankruptcy is another option. Although a bankruptcy will appear on your credit report for several years, it is an option that can drastically improve your current situation. During the Chapter 7 bankruptcy process, you may need to sell certain assets to help pay some of your creditors back. These assets could include extra homes and cars you may own. Although you may need to sell some of your property, you could still keep your home as long as it is in good standing with the mortgage company, and you would not have to worry about a re-payment plan. Click here to learn more about getting a Chapter 7 bankruptcy lawyer.
Getting out of debt takes time, but it is entirely possible. It is hard trying to pay thousands of dollars back when interest rates keep climbing and causing the total amount owed to increase. However, you can use the method of paying off the card with the lowest balance first to try to improve your financial situation. You can also choose to file Chapter 7 bankruptcy to get a fresh start.
I am a real estate attorney, and I have been helping clients buy and sell property for many years. Some clients do not realize their legal obligations and options when it comes to purchasing or selling a house or land. I hope that this blog will be a way for people to get information about legal issues in real estate and what they need to know when doing business. Buying and selling property can be complicated, and all parties involved have legal obligations. Know what is expected of you, and you will be able to get the best out of your real estate transactions.