The Huggins Law Firm, PA
Call to Schedule a Free Consultation
Columbia 803-764-1558 Charleston 843-509-0039

Effective options for paying down credit card debt

Credit card interest rates can range from 20 to 30 percent, and the interest a cardholder pays is not tax deductible like interest paid on a mortgage. Therefore, it should be a top priority for South Carolina residents to pay off credit card debt as soon as possible. One option may be to transfer an existing credit card balance to another card through a balance transfer.

In some cases, it may be possible to get an introductory rate of zero percent for up to 21 months. Some credit card providers will waive the balance transfer fee to help individuals save even more. If the fee isn't waived, cardholders can expect to pay a fee equal to 5 percent of the total balance transferred. Those who don't want to take use a balance transfer may want to look into a personal loan or a loan from a 401k.

Personal loans may be offered at a lower rate than what an individual may be paying on his or her credit card debt. However, the best rates are generally reserved for those with good credit and who don't already have a lot of debt. A 401(k) loan uses a cardholder's own retirement funds to consolidate debt and can be repaid over five years at rates lower than those offered by credit card companies.

Those who are looking to get a better handle on their credit card debt may wish to file for bankruptcy. Doing so may eliminate some or all remaining balances or allow a debtor to reorganize the debt to be repaid over several years. An attorney may be able to further explain how bankruptcy may provide a debtor with a stay from creditor actions such as wage garnishment.

No Comments

Leave a comment
Comment Information

The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
Suite 201
Columbia, SC 29201

Phone: 803-764-1558
Fax: 803-764-1563
Columbia Bankruptcy Office

Columbia Office

Charleston Office
925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
Fax: 866-481-2325
Map & Directions

Charleston Office