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Tips for paying off credit card debt

People in South Carolina who have credit card obligations and who receive a tax refund should consider using the refund to pay down that debt. While it may be tempting to spend the money on something more fun, it is worth keeping in mind that paying off a card with a $3,000 balance at 19 percent interest saves over $500 in the year ahead.

Even if the refund is not enough to pay off the total credit card debt, people can still use it to pay off part of the balance. A good strategy is to pay toward the card that has the highest interest rate. It might also be possible to move all debts to one card with the lowest interest rate.

Another important component to paying down a debt more quickly is making more than the minimum payments each month. Budgeting may help people find areas where they can use more money toward paying off a debt. Once credit card debt is finally paid down, people should aim to pay off their credit cards monthly. Companies can raise interest rates at any time and may do so after just one missed payment.

Unfortunately, for some people, paying off credit card debt is simply not feasible. Often, credit card debts are not due to a failure in budgeting or irresponsibility but because of unavoidable circumstances such as illness, job loss or divorce. People who are overwhelmed by these types of obligations may want to seek the advice and counsel of an attorney who can discuss options up to and including bankruptcy.

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The Huggins Law Firm, PA

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Columbia, SC 29201

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