Stop credit card debt in its tracks

On Behalf of | Aug 27, 2022 | Credit Card Debt |

Most Tennessee families have experienced financial strains at some point in their lives. In fact, it seems to be a common theme throughout the country in recent years. One of the biggest problems is credit card debt; many people are looking for ways to lower their debt or, better yet, resolve it altogether.

If spending habits have led to credit card debt, a lot of headway can be made by tightening the purse strings, so to speak. Limiting purchases to necessities only, for instance, helps keep money in the bank and the credit card balance lower. If things have already gotten out of hand, there are several ways to start chipping away at the escalated balance on a credit card.

Try to set money aside for emergencies

It might not be immediately obvious how starting an emergency fund can help lower credit card debt. Consider the fact, however, that many people run up a big balance on their credit card by using it to pay for unexpected costs, such as medical bills or vehicle repairs. If there is a nest egg set aside for emergencies, that is less swiping that will occur on the credit card if a problem arises.

Pay off debts from smallest to largest

Focusing on one debt at a time and paying off the smallest first is known as the “snowball method” in the financial industry. It is often a viable option for people who have high debt on multiple credit cards. Simply choose the one with the lowest amount of debt and pay it off first, then move on to the card with the next highest balance. Sometimes, additional debt relief support is needed, which is when it is a good idea to explore bankruptcy options.

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Richard Banks & Associates, P.C.

393 Broad Street Northwest
Cleveland, TN 37311
Toll Free: 866-596-8527
Phone: 423-244-0009
Fax: 423-478-1175

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