Even before the recent recession, many people in Oregon and throughout the country struggled with debt. From credit card debt to medical expenses or tax bills and more, there is no end to the type of debt which can cause serious problems for consumers. Some people try to decide if working to keep paying off debt or if filing for bankruptcy is the better option. There is no one-size-fits-all answer for that as each situation is completely unique.
For people who have opted to work toward paying off debt instead of filing for bankruptcy, there are some recommendations that can help to improve their overall financial health. A current news story outlined three things that help a consumer’s credit including making all payments on time, even if only minimum payments. Another is to work with a creditor to see if they would be willing to eliminate some issues from a record. Finally, preventing high debt from staying on one credit card for a long time is helpful. If possible, move debt to other cards to avoid this.
When paying off credit cards or other debts, asking a creditor to reduce an interest rate can often be successful. Using savings to pay credit cards can be a good way to expedite the process of reducing debt. For people with multiple debts to pay, identifying and targeting those with the highest interest rates first will save money in the long run.
Excessive consumer debt can seriously impact peoples’ lives. Talking to an attorney may give debtors insight into tips like those above that can minimize the negative effects of debt or offer ways out of debt eventually.
Source: ABC News, “6 Steps to Fix Your Credit Score and Credit Card Deb So They Won’t Be An Embarrassment,” Elizabeth Leamy, April 28, 2014