How many are starting off the New Year with credit card debt?

Mississippi residents may be interested to learn about some strategies they could employ in the New Year to get themselves out of debt. Credit card debt is a pervasive national problem, and it is no surprise that one of the most common resolutions is to pay off those annoying debts.

Recently, some financial experts have suggested a number of ways for individuals and families to successfully pay down this type of debt. First, it is advisable to itemize exactly what is owed to each creditor so all of one's debts are properly tallied. Then, debtors should focus on one of their cards-maybe the one that has the smallest outstanding balance or the one that has the highest interest rate, depending on what one realistically believes he or she can accomplish. Then, one should do whatever is possible to obliterate that debt.

Financial advisors suggest saving at least 10 percent of one's income to use to pay this debt off. This can be accomplished by itemizing one's daily expenses and cutting back wherever possible. While paying off this debt, one can pay only the minimum balances on the others. However, once one form of debt has been taken care of, the debtor should move on and immediately tackle the next credit card.

Unfortunately, some individuals are simply not in a position to follows these tips and must resort to other methods for debt reduction. Filing for bankruptcy may be the best option for some individuals, depending on the circumstances. With the average credit card debt nearing $5,000, and interest rates and late fees skyrocketing, more individuals are considering filing for bankruptcy as an option. Upon filing for bankruptcy, all interest and late fees immediately stop, and individuals are provided with the opportunity to rebuild their financial futures.

Source: finance.yahoo.com, "Resolutions 2013: getting rid of debt," Angela Colley, Jan. 2, 2013

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