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Tips for paying off credit card debt

Many Florida residents and other consumers around the country frequently use credit cards for purchases. Some use them only for big ticket items so that they may earn points or rewards, while others must use them for everyday or unexpected expenses. Regardless of how they use them, cardholders have now amassed over $1 trillion in credit card debt, according to the latest reports. Experts at an online consumer financial website have offered several ways to reduce that debt.

One recommendation is to view the amount of credit card debt in parts, rather than the whole. If someone looks at the total amount owed, he or she may be overwhelmed. Experts suggest working on repaying the debt in more manageable amounts. Certainly, this does not reduce the total that must be repaid. However, this approach can make the task ahead less daunting.

There are two main methods used to pay off credit card balances. Consumers always need to pay at least the minimum balance due, to avoid any negative impact on credit scores. One approach is to focus on paying off the card with the highest interest rate. The other popular method is to pay off the card with the lowest balance owed. After that balance has been paid, then move on to the card with the next lowest balance.

Financial counselors also suggest transferring an existing card balance to a credit card with a 0 percent interest rate. This action can allow someone to apply the money saved in interest to credit card balances. Finally, a person may want to consider a debt consolidation loan. By combining several card balances in a personal loan, a consumer can often save money in interest and also get a lower monthly payment.

Credit card debt can quickly become a problem for many consumers. To take control of one's finances, it would be wise to develop a plan to reduce or eliminate credit card balances as quickly as possible. A Florida bankruptcy attorney can help clients create a plan tailored to their specific needs and get them on the road to financial freedom.

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

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