Spring has arrived in Connecticut and all across the nation. Many individuals set apart time for “spring cleaning” and give their residences extra attention as they begin a new season. This process can be applied to someone’s budget as well. Some consumers are in need of debt relief because their finances have been left unattended, and credit card balances have continued to mount. Experts recommend developing a plan to clean out debt and get one’s financial house back in order.
Many people establish a goal and use it as a motivating factor as they try to eliminate their debt. For example, some may reward themselves with a dream vacation or home remodeling after they are no longer burdened with debt. The individuals are also rewarded with the knowledge that they can make these major purchases with no interest or fees compounding.
An online financial website reports that the average household in the country carries nearly $7,000 in credit card balances each month; therefore, making a plan to tackle the balances is crucial. Some experts suggest paying off the cards with the lowest balances first. This so-called snowball approach can offer motivation for many consumers. Others prefer the avalanche method, which focuses first on the debts with the highest interest rates. The bottom line is finding which method will provide the most motivation for reducing overall debt.
There are several options for paying the debts off more quickly. If available, transferring some debt to a 0 percent interest credit card may be helpful. In some instances, credit card companies may be willing to renegotiate a lower interest rate or a different payment plan. Of course, counseling or a debt management plan may be a better solution.
Having unpaid bills and mounting debts can be emotionally draining and overwhelming. A Connecticut bankruptcy attorney can help consumers develop a plan to provide debt relief. A knowledgeable lawyer will work diligently with clients to get their finances back in shape.