When you're spending money on your credit card during the holiday season, it's easy to overlook the impact on your future. You assume you'll be able to handle all the debt that comes your way.
Unfortunately, once the holiday season ends, you may find yourself with more credit card debt than you imagined. This leads you to a situation in which you must take immediate action.
Here are some questions to answer in an attempt to handle post-holiday credit card debt in a timely and efficient manner:
- How much debt do you have? Knowing exactly what you're up against allows you to implement a plan for digging yourself out of your financial hole.
- What's the interest rate attached to your credit card? Look for ways to lower your rate, such as with a balance transfer credit card or simply by negotiating with your credit card issuer. This will save you money when carrying a balance.
- Do you have a repayment plan in mind? It's easy to say you'll pay down your credit card debt, but much more difficult to do so. A repayment plan will give you a clear idea of what's expected and when you'll begin to see results.
If you've tried all these things and have yet to make progress, it may be time to take things to the next step. This often means learning more about Chapter 7 and Chapter 13 bankruptcy.
With a bankruptcy filing, you can eliminate or reorganize some or all of your debt. This can go a long way in helping you gain control of your finances.