Bird & Van Dyke, Inc. - A Professional Law Corporation
Contact us for a Free Initial Consultation | Se Habla EspaƱol
Stockton 209-390-8877
Tracy 209-832-4800

How to stop increasing credit card debt

For many California consumers, high levels of credit card debt have led to a debilitating financial scenario. Once the balances have grown to a certain level, it becomes incredibly difficult to find a way to pay them down to more manageable levels. Factor in rising interest rates and a wide range of fees and penalties, and credit card debt can quickly ruin one's financial outlook.

When addressing the problem, the most important course of action begins with putting an immediate stop to the use of one's credit cards. While this may seem like a common sense approach, many families have relied on credit to pay for their basic living expenses for a long time. It can be a challenge to take the steps needed to end that cycle of bad debt.

To put the matter into perspective, consider the balance on your highest interest rate card. It may be in the range of 17 percent, but it is not uncommon for lenders to raise rates as high as 25 percent. Compare that to the rate that you earn for money sitting within your savings account.

Those rates usually sit closer to 1 percent. So, by aggressively paying down the balance on the high rate credit card, you are effectively 'earning' 17 percent or higher on what you would have paid to the credit card company over the course of time. Of course, in order to climb out of debt, it is necessary to stop using the cards and adding to the balances due.

This is just one approach that can help California consumers take control of their credit card debt. While debt repayment is an option for many, there are some circumstances in which no method of repayment will be sufficient to eliminate existing debt entirely. In such cases, consumers should research other debt relief options, including filing for personal bankruptcy.

Source: babble.com, "Stop Using Credit Cards When You're in Debt," Kathleen O'Malley, July 11, 2013

No Comments

Leave a comment
Comment Information
Email Us Today

Contact Bird & Van Dyke

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Review Us

Stockton Office
2111 West March Lane, Suite B 300
Stockton, CA 95207

Phone: 209-390-8877
Fax: 209-478-9954
Stockton Law Office Map

Tracy Office
1138 Parker Avenue, Unit B
Tracy, CA 95376

Phone: 209-390-8877
Phone: 209-832-4800
Fax: 209-478-9954
Tracy Law Office Map