Recent studies suggest that American consumer debt has just passed a new milestone, totaling some $13.2 trillion for the 2018 fiscal year. This means that the average South Carolina resident carries debt of over $40,000, including credit card debt, student loans and other forms of debt. This may sound dire, but thankfully, many strategies exist to help those struggling with debt to free themselves from these financial problems.
When setting out on the road toward financial stability, having a plan is of paramount importance. It can be helpful to take stock of all existing debt in order to best approach how to start paying it down. It should come as no surprise that this process will likely involve drafting a budget that accounts for paying down existing debt, which must be adhered to in order to be successful.
Some experts suggest that 20 percent of after-tax income should be set aside to put toward paying down debt, but of course this can change from situation to situation. There are multiple ways one can approach paying down debts, particularly of the credit card variety. The so-called “avalanche” method calls for debtors to start with paying down the credit card with the highest interest rate, while the “snowball” method advocates paying the lowest balance off first, moving sequentially up to the highest balance.
It can be difficult for South Carolina residents to determine which credit card debt management strategy is right for them. This is why the support of a dedicated and experienced attorney can be so helpful in planning out debt consolidation or repayment. In some cases, a Chapter 7 bankruptcy filing can be the best option — another strategy that can benefit from the support of an attorney.