People who wish to purchase items or receive services regardless of whether or not their budget allows, may end up with hefty credit card bills. Credit card debt can build up rather quickly, as people purchase Christmas presents, electronics and go on vacations using plastic money. In some cases, these credit cards may have high interest rates and annual fees that add even more to the balance owed.
According to the National Foundation for Credit Counseling, it is crucial that debtors pay off credit card expenses as soon as possible. High interest rates pile on added debt every month that the balance is not paid off in full. There are some things debtors can do to minimize the risk of adding extra debt to their credit cards, and to get their expenses paid off in a reasonable period of time.
People can transfer the balances of their high-interest debt to credit cards with a lower percentage rate or possibly zero percent interest. In addition to making credit card payments on time, debtors should attempt to pay well over the minimum payment. For example, if the minimum payment on a high-interest card is $100, the debtor may end up paying back thousands more than the amount of the original loan.
There are a lot of options for people who are looking to pay off their credit card debt. You may want to speak with a bankruptcy attorney regarding your options to gaining financial relief.
Source: The New York Times, “Time Is Not on Your Side When It Comes to Credit Debt,” Ann Carrns, Jan. 20, 2017.