Arkansas individuals who are struggling with credit card debt have a number of options for reducing or getting rid of that debt. They may be able to pay it off, but that is not always an available option. Those who can pay more than the minimum amount and who have debts on more than one card should apply most of their payment to the high-interest card first while only paying the minimum on the other cards. Another option for reducing credit card debt is to switch as much of the debt as possible to a card with a low introductory rate. Individuals should be cautious with this option, however, as after a certain period of time, the rate jumps back up and may be high.

Cutting back on expenses and applying the savings to the debt is another option. Individuals might consider reducing their impulse purchases or taking lunch to work instead of eating out. The withholding allowance can be adjusted so that rather than receiving a big refund each year, individuals get a little more in their paychecks which can be used to reduce debt.

However, none of these may be options for some individuals. Even for those who can afford minimum payments, bankruptcy may be a better option. Paying only the minimum can take years, and individuals may end up paying nearly as much in interest as the original debt owed. Furthermore, they may be struggling to make even these minimum payments.

Individuals who cannot pay may face credit card lawsuits. Bankruptcy can put a stop to these lawsuits and allow an individual to start over and rebuild credit. An attorney may be helpful in determining the best course of option regarding a debt.

Source: USA Today, “Personal Finance: How can I pay off credit cards faster?“, Robert Powell, September 02, 2014