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Ways to manage debt

When the various demands of life happen all too quickly, the wallet can ultimately suffer. Countless Kentucky residents struggle with financial worries, in which debt becomes the sole focus of every endeavor. As frustrating as managing one's debt can be, there are a number of paths one can take to reach financial freedom. 

U.S. News reveals in an article on managing money that the average American household owes an alarming $17,000 in credit card debt. This statistic is indeed unsettling, but the article continues by offering insight on addressing surmounting debt. By creating a budget, consumers can better control and oversee where cost cuts may be necessary. With that said, U.S. News advises readers to approach the most expensive debt first; doing so can tackle the highest interest at hand. Paying off more than the minimum balance is another way debtors can combat this common financial issue. While it can be tempting to pay off only the minimum monthly fee, this method can prolong debt. 

Because each money-related problem can be unique, some approaches may work better than others. CNN encourages consumers to cut down on variable spending, and to also put any extra money into paying off debts. Consumers can look to the following additional pointers when managing debt:

  • Try to boost income
  • Transfer high-interest balances
  • Make a list of debt owed   

Adding extra cushion to one's bank account is never a bad idea, especially when one owes money. Selecting a card with a lower interest rate -- and then moving high-interest credit card balances to that card -- is another way debtors can properly handle the issue. Making a list of owed debts is just one more option for consumers. These strategies may work for some, but for others, filing bankruptcy is the best approach. Those in debt may look to further resources when grappling with this difficult financial chapter. 




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