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Strategy to get out of consumer credit card debt

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Details: If a good friend of yours has had serious financial misfortunes lately and is unable to meet her debt payments, what advice can you give? Be sure to include the topic of bankruptcy because she has heard that it eliminates all your credit problems. In your discussion, distinguish between straight bankruptcy and a wage earner plan.

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Solution Summary

This posting will look at ways to reduce consumer credit card debt, by looking at the snowball method, debt consolidation, wage-earner plan and bankruptcy as some of the viable options.

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A good way to get out of debt is to consolidate all of your debt into 1 payment - you can put your credit cards, line of credits.. all onto 1 account, and then you can pay that one account at once. This means that all creditors get their monthly payments, and you can easily keep track of what you owe. Often consumers have 15 credit cards, and they might neglect one card if it has a small balance. This is a horrible strategy, since that one card will also accumulate interest.

The best strategy is also to pay the highest amount on your debt that has the highest interest. This will help you pay ...

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