This summer, American consumer credit card debt rose to a whopping $1.02 trillion. As difficult as that amount of money is to conceive, it's enough to know that it's a monster-load of debt. Thinking about all this debt may also inspire you to think about how much debt you currently have rolling over on your credit card statements each month.
Maybe, just maybe, you're even considering the effort it will take to pay this debt off. Yes, if you're diligent and you have a sufficient amount of income, you may be able to tackle your credit card debt, but before you make your first payment, you'll want to do the following three things:
- Make a list of your credit cards and the balances on them. Also, put a note about the interest rate being charged on those balances.
- Add up all of your credit card debt and compare this debt to your annual income. Find out what percentage of your annual income your credit card debt makes up.
- Decide how much money you can afford to spend on paying off your credit card debt. Make this amount as high as you can, but stay realistic. You want to keep enjoying life while not getting burned out on your debt payoff process.
How is it looking? Do you think you can pay off your credit card debt in a year? In two years? If paying off your credit cards is looking like an impossible task, you may want to consider getting in touch with a Washington bankruptcy lawyer who can talk about different debt resolution and bankruptcy options that are available to suit your financial circumstances.
Source: wral.com, "Different ways to zap your debt: Which is for you?," Sean Pyles, Sep. 14, 2017