The majority of Michigan residents own credit cards and use them frequently. Credit cards can be a convenient way to buy things, especially large purchases. Since credit cards are so handy, it is incredibly easy to rack up large amounts of consumer debt. Paying down credit card debt can be tough, especially for accounts with high-interest rates. These strategies can help consumers pay off their credit cards and avoid bankruptcy.
Make extra payments
Many credit card holders are in the habit of making one payment per month on or before the due date. However, making extra payments each month is one of the best ways to reduce credit card balances. The finance charges on an account are based on the account’s average daily balance. This means the credit card owner will pay more in interest if he or she makes only one payment per month.
Transfer the balance
Those who have a high credit score may be eligible for a card with a special promotion or a low annual percentage rate. Transferring the balance to a new card can help consumers pay off balances. In fact, many credit card companies offer balance transfers at an introductory APR rate of zero for a certain period of time. This can give a window of opportunity to pay off debt quickly.
For those who have accumulated high amounts of debt and feel that there is no way out, the most optimal choice may be to file for bankruptcy. A Chapter 7 bankruptcy can eliminate many types of consumer debt. However, filing for bankruptcy can have consequences and is not a decision to take lightly. For those in Michigan considering bankruptcy, it is recommended to speak with an experienced attorney who will thoroughly evaluate an individual’s case to help them make the best choice.