When Life Gives You Lemons — Call an Attorney

Debt is a necessary evil—without it, big-ticket items like homes and cars would be unattainable for the average person. In fact, in order to qualify for a home or car loan, you must demonstrate a good credit history, something that can only be done by previously taking on debt. That being said, the debt that is necessary for everyday life can easily spiral out of control. While credit cards are good way to build your credit score, they can easily become a detriment to it if not used responsibly. In 2014, the average indebted American household carried $15,611 of credit card debt, making credit cards the third leading cause of indebtedness after mortgages and student loans. If your credit cards have started hurting more than helping, here are some ways to rein in the problem before your only option is bankruptcy:

Eliminate The Problem

As you pay down your credit card debt, the cards themselves should only be accessible in case of an emergency. This doesn't mean you need to go to the extreme of freezing them in blocks of ice. Simply taking them out of your wallet and storing them out of sight is sufficient. If you are nervous about them being accessible in your house, consider handing them over to a trusted friend or family member. Remember that part of making them inaccessible is to take them off of auto save on your online shopping accounts.

Just because you aren't using the cards at the moment doesn't mean you should close the accounts and cut them up. In fact, as you pay off your credit cards the debt that they carry can again become a boon to your credit rating. Part of your credit score depends on your debt capacity, or how much credit is open to you in comparison to how much debt you hold. When you are again using 35% or less of the credit available to you, your score will start to go up again. 

Talk To Your Creditors

Between getting paid at a lower interest rate and having to forgive your debt in a bankruptcy settlement, your creditors will likely chose getting paid. At the first sign of trouble, before you miss even one payment, call and talk to your credit card company. If you have had other credit card offers at lower interest rates, let the company know that you are considering transferring your balance elsewhere, and they may be more willing to work with you.

Snowball Your Debt Down

The fastest way to eliminate your credit card debt is to use the "snowball method." Each of your credit cards will likely have a different balance and a different interest rate, and you will save the most money paying off the card with the highest interest rate first. To do this, pay the minimum payment on all of your cards, but put extra money towards your highest interest rate debt. Continue to do this until that debt is paid off. Then, when you move on to the next highest interest rate card, you will pay the minimum payment plus everything you were paying on the card you just paid off. Continue in this fashion until all of your credit card debt is eliminated. 

While you will save more money by paying off your highest interest rate card first, starting by paying off the lowest balance card can provide a sense of accomplishment that encourages you to continue. If this is more likely to motivate you, use the above snowball method, but pay off your cards in order of debt owed in ascending order.

After you have paid off your credit card debt, the best way to stay out of debt is to stick to a budget. Plan on paying off your credit cards every month, and avoid using them for small purchases, like meals out.

If you have too much debt to eliminate using the above methods, there is no shame in talking to a bankruptcy attorney about other options. They may be able to suggest and arrange other methods of paying off what you owe, like a debt settlement plan, before bankruptcy with the help of specialists like http://wfactorlaw.com is your only option.