As Arkansas people approach retirement, some may be concerned about their current financial situation. It has been reported that credit card debt nationwide is escalating toward the high levels that were recorded in 2008. To ensure you do not go into retirement with loads of credit card debt, you can take some precautionary steps.
Some of the tips offered by an adviser include ranking all your monthly expenses by importance and necessity in a list. Evaluate the expenses at the bottom of the list, ostensibly the ones of lower importance, and try to cut back on those as much as possible. The funds that then become available can be used to start reducing credit card debt by identifying the card carrying the highest interest rate. Pay as much as possible on that card and only the minimum payment on the others — once that one is paid, do the same on the one with the next highest interest rate. It may also help to consolidate major debts onto a zero percent credit card, but only if you can pay it off before the zero percent offer expires.
It is not uncommon for consumers to think an emergency fund is unnecessary if they have a retirement fund such as a 401(k). However, an emergency fund is money that is immediately available for events such as a vehicle that breaks down, unanticipated medical care or employment loss. The ideal situation is to accumulate a fund equal to a year’s salary by adding to the fund on a monthly basis. In the absence of an emergency fund, many people have to resort to their credit cards for emergencies, thereby contributing to the vicious spiral of credit card debt.
Many people in Arkansas choose to utilize the services of experienced attorneys who focus on protecting the rights of consumers with overwhelming credit card debt. A lawyer can explain the various remedies for the unique circumstances of each client. The advantages of Chapter 7 bankruptcy will be explained, and this may be a suitable way to get credit card debt discharged.
Source: nowitcounts.com, “Got Credit Card Debt That’s Threatening To Push Back Your Retirement?“, Buck Wargo, Oct. 1, 2015