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How to pay down credit card debt in Ohio

While an individual is typically only required to make a monthly minimum payment of interest plus one percent of an outstanding credit card balance, it could take years to pay off that debt completely. Only paying off the minimum monthly payment can stretch the payment schedule out, resulting in continued accrued interest, which would cost the consumer more money than necessary.

Avoiding incurring such balances can be an effective way to prevent paying too much on interest. This can be done by putting money from a tax refund, a raise or any other unexpected windfall into a savings account. Using such funds as the basis for building a savings account or paying off debts allows a person to become more financially secure without drastically limiting his or her lifestyle.

In addition, when dealing with debt that has already accumulated, it may be a good idea to make more than the minimum payment each month. This is beneficial because the principal balance will go down, and it takes fewer payments to pay off the debt, which will also reduce the amount of interest paid over time. Borrowers who are making the minimum payment should understand that while their minimum payment goes down, they are actually paying less of the principal balance each month. Borrowers who wish to pay down their balance as soon as possible should make the same payment each month regardless of what the minimum payment is.

Credit card debt is one of the most common forms of debt that an individual may have. That debt may be discharged in bankruptcy court if it becomes difficult to manage. A bankruptcy attorney may be able to act as a liaison between a debtor and his or her creditors and could help a client pursue debt relief.

Source: FOX Business, "Fastest Way to Pay Down $50K Credit Card Debt", Steve Bucci, July 31, 2014

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