If you are one of many Americans over your head in credit card debt, paying off your cards may be easier said than done. Some borrowers see paying down debt as denying themselves the things they want or need now, but if you look at it in the long run the benefits are clear. If you pay off a high interest rate card now, you will have more money in the future to make purchases, add to your savings or take a vacation. Instead of borrowing against future income, you will be able to use current income to live on.
Let's take a quick look at the true cost of credit card debt. If you have a credit card balance of approximately $9,000 that carries over from month to month, you may end up paying $32,994 if you make the minimum payment every month. While the interest rate on this card may be 18% or more, the minimum payment may only be 2% of the balance. Without additional charges on the account and by paying the minimum payment, it would take 47 years to pay off this $9,000 card, at a cost of $23,994 in interest.
Interested in paying off your debt rather than resorting to bankruptcy? The first step is to admit that you have a problem. Take a real look at your income and expenses and determine what expenses you can cut back on. Do you really need a tanning salon membership? Can you eat out less and cook at home more? Is it time to bite the bullet and clean your own home rather than rely upon a maid's services? These are all expenses that one may be wary of eliminating but that can make a significant impact on the amount of money you have to actually pay down your credit card debt.
Exercising self-control now can save you tens or hundreds of thousands in the future, depending on the amount of unsecured debt you are dealing with. Eliminating unnecessary expenses and living off real income as opposed to credit is a step in the direction of true financial stability.
If you would like to discuss your debt problems with an experienced attorney, now is the time to contact Jacoby & Jacoby. The Long Island bankruptcy and debt relief law firm is committed to providing borrowers with experienced guidance and legal representation to help them find the right solutions to overwhelming debt, whether this is through
bankruptcy or another, less aggressive option.
Contact a Long Island bankruptcy attorney at the firm today.