On behalf of Law Offices of Mark M. Kratter, LLC on April 26, 2012
One of the predicaments that Connecticut residents may face is that of credit card debt. Unfortunately, credit card debt can be intensely stressful due to the constant harassment of creditors. However, it is possible to gain control over the debt by taking some simple steps.
It can take years to pay off a $1,000 credit card debt if you only make the minimum payments each month. The minimum payment mostly goes toward paying off only the accumulated interest, meaning that the debt burden remains essentially the same. It is therefore important to make larger payments on the debt, and if you have multiple cards, start with the one that has the highest interest rates. The size of your payments can grow as you begin to gain control over your finances.
To help with making larger payments, and to keep the debt from rising further, a monthly budget can also prove to be of tremendous help. A budget should obviously be in line with your income, but it should also take into account that an unexpected event can happen at any time. Thus, money should be left over each month for emergencies. The budget should also include an amount that will be designated to paying off the credit card debt.
Of course, sometimes credit card debt is not the only thing burdening a debtor. Other obligations, such as child support or a mortgage, may also be causing financial distress. Moreover, the cause behind the credit card debt could be something like costly medical expenses that may not be easily remedied. In some instances, then, Connecticut residents facing a mountain of debt may wish to consider the possibility of bankruptcy if there is no foreseeable way out.
Source: ABC Action News, "How to pay down your credit card debt," April 23, 2012
