It’s all too easy to use credit cards to pay for luxuries and necessities, but that ease can lead to insurmountable debt. Once interest rates climb, even responsible users may find it hard to make minimum payments. The average American under 35 has almost $6000 in credit card debt, and when that’s added to an already crowded budget, it can become unbearable. Below are several tips for getting a handle on credit card debt before calling a south jersey bankruptcy lawyer.

Face the Truth

It’s impossible to make an informed decision without considering all the facts. Many people don’t even open their credit card statements, but it’s important to review them carefully and to note the limit, the balance and the monthly payment. Compare these numbers to monthly income, and let the answers serve as a starting point for regaining financial control.

Examine Options

Users should think of how their spending compares to their credit cards. Are there cuts to be made, or does all income go toward monthly bills? Debtors can benefit from a consultation with a credit counselor with the NFCC. By consulting a counselor, a cardholder can get tips on his or her next move.

Be Prepared to Negotiate

In some cases, creditors are willing to negotiate with debtors. A creditor may be willing to take less than they’re owed, or they may offer a lower interest rate. Many creditors are willing to work with clients and help them create a manageable payment plan that delays the need for a bankruptcy filing.

Set a Budget and Stick to It

The decision to hire a south jersey attorney for bankruptcy help requires a clear picture of one’s current financial situation. If the assessment points to a person’s being able to get out of debt, they should set a budget and look for ways to trim spending. However, if bankruptcy is the only option, some of a debtor’s budget should be set aside for filing. Above all, debtors should stop using credit cards and accruing additional debt.

Dealing with debt can be stressful and frightening. A smart consumer accepts that by facing the debt and exhausting all other options, they may be able to avoid bankruptcy or at least delay it. While debt relief may not happen quickly, the tips listed here can put cardholders on a path to greater financial security.