Credit card debt is among the most difficult types of debt to erase, considering high interest rates and monthly payments. Connecticut residents understand the challenges associated with carrying debt, as the average household carries some $8,000 or more in credit cards alone. For those seeking debt relief, there are a variety of options, from consolidation to Chapter 7 bankruptcy.
Consolidating credit card debt essentially means the act of taking out a single loan to replace multiple loans, consolidating all monthly payments into a single payment. In the best case scenario, this payment carries a lower interest rate than the individual credit cards. There are two major ways to consolidate debt in this way.
The first way is to seek out a balance transfer, which involves moving all balances onto a single card. This works particularly well if the card in question features an introductory low- or zero-interest rate for a given period of time. It allows the debtor to pay directly into the principal balance rather than paying interest fees. A personal loan is another way to consolidate debt, which may be a better choice for those who will require a longer period of time to pay down owed money.
Obviously, not all debt relief options will work for every situation. Some Connecticut residents may be facing overwhelming debt that cannot be solved through a personal loan or balance transfer. In these cases, a Chapter 7 bankruptcy filing can be used to liquidate assets to pay down debt and, in some instances, may lead to a full discharge of outstanding unsecured debt like credit cards.