Residents of Connecticut and elsewhere around the country often think of milestones as things to celebrate. Personally, birthdays and anniversaries are marked each year. On a national level, the government recognizes when the population reaches new records or unemployment hits an all-time low. However, some milestones are indicative of the financial struggles many are facing. These statistics reflect the need for debt relief for many consumers.
In 2018, reports state that the credit card debt for the country has now gone over $1 trillion. In addition, there are reports that the total of credit card fees and interest is over $104 billion. This averages out to almost $824 in fees and interest for each household in the nation. The average family has roughly $10,400 in credit card debt. Financial experts recommend several tips for reducing or eliminating this debt and its associated expenses.
Many advisers recommend using the snowball approach to pay off credit card debt. Begin with the card that has the lowest balance and pay as much toward that one as possible, making minimum payments to the other accounts. Once one has paid off that card, start working on the one with the next lowest balance. The avalanche method uses the opposite approach, beginning with card that has the highest interest rate.
Another approach combines the avalanche method with debt consolidation. This “debt lasso” method encourages getting card interest rates as low as possible, even considering balance transfers if a 0 percent rate is available on a card. A debt spiral approach combines the snowball and avalanche methods. One’s card balances are divided by interest rates, then paid off beginning with the lowest amount. Finally, experts say, whether or not a person uses a strategy, “just hustle” diligently to pay the debts off by whatever means possible.
There are so many approaches to debt relief, it can be confusing to many consumers. The fact that debt can be overwhelming is the one thing that is certain. A Connecticut bankruptcy attorney can assist those who are ready to get their finances back in order.