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Considering one's options when dealing with credit card debt

Consumers in Tennessee and elsewhere may be using credit accounts to fund a variety of financial endeavors. As credit card debt is on the rise across the nation, many individuals may be experiencing the stress of dealing with substantial financial burdens. While addressing monetary concerns can be an intimidating prospect, it may also be necessary, and gaining an understanding of how best to approach credit card debts could help a person maintain financial stability.

When dealing with substantial monetary hardships, the first step to forming a strategy to deal with debts may be to become aware of the total amount one owes. However, with credit card accounts, financial experts suggest that it is best to break debts down into portions. Using this method, a person can identify accounts with higher interest rates and focus on making additional payments where necessary.

In situations where there isn't much of a difference on interest rates, experts suggest that paying off accounts with lesser balances could provide a sense of momentum. In addition, a person could also consider applying for a new account with an interest free period and seeking a balance transfer. However, these methods might not be viable in every scenario, and in some cases, a more permanent solution may be necessary.

Individuals who feel they are being financially crushed under the weight of credit card debt could consider exploring additional avenues of relief, such as bankruptcy. With Chapter 7 bankruptcy, many or most of a person's unsecured debts may be eligible for discharge. Since filing for bankruptcy is a major financial decision, a person could benefit from speaking with an attorney in Tennessee for guidance on what to expect from bankruptcy prior to deciding on a path, as well as assistance in navigating the process if necessary.

Source: Forbes, "5 Ways To Pay Off Credit Card Debt Faster", Zack Friedman, May 21, 2018

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