If you’ve been experiencing financial distress, you definitely aren’t alone in your struggle. Many people in Tennessee and throughout the country are in the same boat. For some, unexpected medical bills spurred a balance on a credit card that they’re unable to pay. You might be able to relate to such circumstances, or, perhaps, you’re one of many people in the state who suffered a recent loss of income.
There may have been a few times when the payment cycle was coming to a close but you didn’t have enough money to pay the balance on your credit card in full. If this happened two, three or more times, you may have wound up with a substantial amount of credit card debt. There are often several options available to help resolve this type of financial trouble.
Call your credit card company right away
One of the first steps you can take to try to resolve credit card debt is to ask the credit card company if you’re eligible for a lower interest rate. High interest rates are often the issue that takes an otherwise resolvable debt and makes it impossible to pay off. If you qualify for lower interest, it might be just what you need to restore financial stability.
Now might be a good time to refinance your mortgage
In order to pay off credit card debt, it’s helpful to be able to lower other debts first. If you’re paying a mortgage on a home, you might consider refinancing in order to secure lower monthly payments. You can then use the money you would normally be sending in to pay down the credit card debt.
If you can, always pay more than the minimum amount due
As mentioned earlier, credit card debt skyrockets because of unpaid interest and rates that keep increasing, plus late fees and other issues. If you send more than the minimum amount due each month, you’ll eventually see a significant decrease in your balance. This system is not just helpful for credit cards but all other loans, as well.
What to do when these options are not enough to pay off credit card debt
Having a high amount of credit card debt often sparks financial problems in other areas, as well. You may reach a point where the usual debt solutions are simply not enough to help you resolve your financial problems. In such circumstances, many people in the past have found it helpful to file for bankruptcy.
There are several types of bankruptcy. Each is specifically designed to help resolve financial problems under certain conditions. For instance, if you earn a steady income that is above the median income in Tennessee, you would not qualify for Chapter 7 bankruptcy but may be eligible for another program. The good news is that most financial crises are temporary. If you explore all options, you might find one that perfectly fits your needs to help get things back on track.