The FOMC (Federal Open Market Committee) has voted to raise interest rates by 75 basis points to 3%-3.25% in September. As the Federal Reserve increases interest rates to tackle inflation, it affects many aspects of our lives. The cost of living, the housing market, and credit card debts are all on the rise.
Keep on reading to find out what you can do to handle these measures and their consequences. If all else fails and your debt is overwhelming you, finding a reputable bankruptcy lawyer in San Marcos will help you get back on your feet.
How should I deal with my credit card debt in the current climate?
The Fed increasing interest rates affects your money in different ways, including your credit card debt. And while the housing market being in a deep recession may put pressure on the Fed to stop with interest rate hikes, we are still feeling its impact.
As we can’t predict the light at the end of the tunnel, we should focus on dealing with the issue at hand and try to handle our credit card debt. Here are 4 ways you may be able to do away with your debt:
Pay off some or all of your credit card debt
If you’re lucky enough to have disposable income in these difficult times, paying off your debt may be your best option. Chapter 13 may also be not only a viable option but your best option since chapter 13 allows you to restructure your obligations. Chapter 13 alleviates your financial burden by allowing you what you can afford to pay, not what the banks demand that you pay.
Stop using your credit card
The last thing you want is to accrue more debt on your credit card. What you can do is stop using it. Go with cash or your debit card whenever possible. This way, you’ll have a better handle on your finances and you’ll know exactly how much you’re spending in real time.
Apply for a balance transfer credit card
With a good credit score, you may be able to transfer your balance to a 0% APR (annual percentage rate) credit card. This may allow you to pay off the balance with no interest for a specific time period, which can be up to almost two years.
You should be aware that most cards have a balance transfer fee, so make sure to calculate everything to know whether it’s worth the effort.
File for bankruptcy
If every other method is out of the running and you’re drowning in credit card debt, your best bet would be to file for bankruptcy. You’ll be able to eliminate some or all of your debt and get a fresh start and better prospects in the current climate.
Where can you find an experienced bankruptcy lawyer in San Marcos & the nearby areas?
To get out of the vicious cycle that is credit card debt and get on top of your finances, your best option may be to file for bankruptcy. To get the most benefits out of it, you need to hire reputable bankruptcy attorneys such as Chang & Diamond.
From giving you the necessary information and representing you throughout the process to answering your questions and helping you get back on your feet, we are at your disposal.
Reach out to us and set up your free initial consultation and take the first step toward a stress-free financial future. With our expertise-based assistance, you’ll be able to once again enjoy strolling around Jack’s Pond Park without your debt looming over you.