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Which credit card debt settlement plan is most effective?

It has been reported that the average American family pays $2,000 in credit card debt interest every year. This is an indication of the level of debts carried by families nationwide, including in New Jersey. There will never be a shortage of advice on eliminating credit card debt, but professionals suggest two options that are said to be most effective.

The first method is for those consumers who have given up because trying to reduce the debt load just took too long without any significant results. The snowball method is suggested for these individuals because, although it will not be the most cost-effective way of eliminating debt, progress will be evident. By this approach, the debts are listed from the smallest to the largest amount and also paid in that order, allowing quick results.

The other method is known as debt avalanche by which the debts are listed from the highest to the lowest interest rate. By paying debts off in this order, huge amounts of interest can be saved. In both methods, all other cards must only be paid the minimum required amount while as much as possible is paid on the debt at the top of the list.

Regardless of which method is chosen, credit card debt could possibly be eliminated by determined consumers, but it may be a time-consuming process. However, if credit card payments are already in default, creditor harassment may be overwhelming. New Jersey consumers who face mountains of unpaid credit card debt may choose to consult with an experienced bankruptcy attorney to learn about the options available under the U.S. Bankruptcy Code and the protection offered.

Source: Forbes, "Debt Snowball Or Debt Avalanche: How To Eliminate Credit Card Debt", Nick Clements, Accessed on July 9, 2016

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Goldman & Beslow, LLC is a Federal Debt Relief Agency by an Act of Congress. We have proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 38 years.

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