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Credit card debt strategy may not work for Tennessee residents

On Behalf of | Aug 21, 2015 | Credit Card Debt, Firm News

Many individuals may try various strategies when it comes to eliminating their debt. However, some tactics that work for some Tennessee residents may not be the best course of action for other individuals. When parties are working to handle credit card debt, they may wish to assess their situation in order to determine what steps may be most beneficial to them.

One strategy that some individuals use when it comes to paying off credit cards is the small victories strategy. This tactic involves individuals paying off credit card balances one at a time, typically starting with the smallest amount. The idea behind the strategy is that individuals will feel a sense of accomplishment and then work harder toward paying off all of their debt. However, this path may not work for all parties.

Some individuals may have credit cards with high interest rates, and if they focus first on cards with low balances, they may be making their situations worse as interest on other cards continue to accumulate. Paying off cards could potentially also have negative results if it leads individuals to feeling as if they have money to spend since reducing their debt by a small amount. This may lead to overspending that could harm the financial situation.

If Tennessee residents are facing difficult credit card debt situations, they may wish to consider methods that are proven to reduce debt. Bankruptcy is an option that some individuals may wish to consider that could work toward eliminating debt for qualifying individuals. If parties are interested in utilizing this option for handling their debt, they may wish to gather more information on bankruptcy options.

Source: CNBC, “Is the ‘small victories’ debt strategy a real win?“, Kelli B. Grant, Aug. 17, 2015