Strategies for paying down credit card debt

On Behalf of | Feb 4, 2021 | Bankruptcy |

It may be possible to eliminate credit card debt in a matter of months by filing for bankruptcy in Florida. However, doing so may also result in a significant hit to your credit score and creditworthiness. Let’s take a look at what you should know before resorting to a drastic debt relief measure.

Debt consolidation may be an option

If you have a credit score of at least 640, it may be possible to consolidate your existing credit card balances on a new card that offers 0% financing. As a general rule, credit card companies won’t charge their new customers interest on purchases or balance transfers for up to 18 months.

Other debt relief options may be available

A credit counselor may be able to help you develop a strategy to pay off your credit card balances without resorting to bankruptcy. For instance, he or she may talk more about the snowball, debt avalanche or other effective methods of getting out of debt in a timely manner. In some cases, a credit counseling service will work with your creditors in an effort to help you obtain more favorable loan terms.

When might bankruptcy be your best option?

Filing for bankruptcy might be in your best interest if you don’t think that you can pay down your existing debts over the next five years. It may also be in your best interest if you have few assets that might be liquidated in a Chapter 7 proceeding. Finally, if you have poor credit, seeking protection from creditors may actually be a net positive as your credit score might actually go up after doing so.

If you are looking to get out of debt in a timely manner, it may be in your best interest to file for bankruptcy. An attorney may be able to determine if you’re eligible for Chapter 7 protection, the process of filing a bankruptcy petition and the benefits of doing so. These benefits may include an automatic stay against creditor collection activities.