If your holiday spending got out of control and you are wondering how you are going to pay your credit card debt, you are not alone. In fact, it has been reported by NerdWallet that the average American household has approximately $15,000 in credit card debt. But how do you payoff your credit card debt and still afford the necessities and save for your retirement? There is no easy answer.
Many financial advisors recommend paying off credit card debt as quickly as possible because it usually has such high interest rates. Additionally, if you have older credit cards, it is important to understand that they can improve your credit score. Thus, if you are trying to decide which credit cards to keep, the older cards with the best terms will be the most valuable in helping you rebuild your credit score. Finally, you should consider cancelling credit cards with annual fees.
A large part of your credit score is based upon your credit card balances and payment activity. While there are multiple options for dealing with your credit card debt and improving your credit score, you should confer with a debt relief attorney to discuss which option is most beneficial for you.
If settling your credit card debt or negotiating an affordable payment plan is not an option for you, it may be time to consider filing a Chapter 7 or Chapter 13 bankruptcy. Most credit card debt is unsecured (no assets pledged as collateral for the lender). In a personal bankruptcy, unsecured debts are often discharged or eliminated. In fact, many debtors are allowed to discharge thousands of dollars of credit card debt!
To better understand your options for dealing with your overwhelming credit card debt, contact us today. We are bankruptcy lawyers who know how to make a difference in your financial situation. We have experience you can rely on and we care about your results. Contact our New Jersey law firm online by filling out the form or by calling 973-323-2953 to schedule a free initial consultation with an attorney at Levitt & Slafkes, P.C..