People amass credit card debt for many reasons, as there are few restrictions on using one. California borrowers could use their cards for necessary purchases, cash advances, and entertainment items. Unfortunately, excessive credit card usage might lead to massive debt. Certain strategies may help someone struggling with enormous credit card balances to get out from under.
Approaches to pay down credit card debt
Generally, it might be good to cut back on credit card usage when the balances become too costly. Continually using the cards would, essentially, replace payments with more borrowing. Unfortunately, those struggling financially might not have a choice when their funds are limited.
Paying more than the minimum monthly balance and possibly applying the snowball strategy of paying off one card through increasing the monthly payment and then moving on to the next card could lead to a way out. Again, this process requires someone to have the additional funds to make the strategy possible.
Other options, such as debt settlement and consolidation strategies, could move a debtor toward eliminating credit card debt. These steps might take time and require a commitment to revamping overall budgets. Unless the debtor gets their budget under control, credit card payment strategies may become challenging.
Bankruptcy as a plan
Filing for bankruptcy might be the only way for someone buried under massive debt to address credit card balances and other obligations. Those whose debts exceed their assets could explore Chapter 7 or Chapter 13 protections.
Those who pass the means test for Chapter 7 bankruptcy may find their credit card debt entirely discharged. Chapter 13 involves following a three-year to a five-year payment plan, although credit card debt could also become discharged under this process.