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Credit card debt does not have to derail one’s financial future

Most Kentucky consumers use credit cards, but this form of debt can lead to serious financial struggles. Overuse can lead to credit card debt that a consumer may not be able to pay on his or her own, and these problems can affect other areas of one’s financial life as well. It may seem like there is no way out, but there are ways that one can deal with this type of debt and preserve his or her financial future.

One of the first steps to truly regaining control of credit card debt is to make a list of all cards and the balances owed on them. One of the most significant problems for cardholders is that they may have multiple cards, and it can be difficult to keep up with payments. After making a list, it can help to decide which one to pay off first. This may be the one with either the highest interest rate or the lowest balance.

In order to put more payments toward credit card balances, it may be necessary to cut spending each month. Even a small additional amount going toward paying off a card each month can make a difference in how much the cardholder will pay in interest and how long it will take to pay off the card. Even with these steps, it may not be possible to reduce the amount of debt to a level where a Kentucky consumer can easily manage it.

Chapter 7 bankruptcy offers individuals overwhelmed by credit card debt a way out. Through this process, unsecured debt no longer has to have a hold over a consumer’s life. Upon completion, bankruptcy can lay the foundation for a better financial future.

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