Many Tennessee residents use credit cards to make purchases and then end up with a high credit card balance that they cannot afford to pay off. Because credit card debts have the highest interest rates of just about any form of obligation, it can be very difficult for credit card holders to get their balances back down to zero.
Credit card holders who want to pay off their debt may want to use some tricks to escape from high interest rates. Taking out a credit card that has a lower interest rate and transferring the balance from a higher interest rate card can save a lot of money in the long run. Debtors that want to transfer their balances should look for credit cards that offer no-fee balance transfers.
In some cases, it can be wise for a debtor to try to eliminate credit card debts altogether. A bank or credit union may be able to offer a personal loan that a debtor could use to pay off their credit cards. If a credit card holder has a 401(k) plan or a life insurance policy, it is possible to take out a loan on these accounts. The benefit of life insurance and 401(k) loans is that the borrower's credit rating is irrelevant.
When people have overwhelming credit card debt that they have missed payments on, they may not be able to qualify for a balance transfer or a personal loan. They may want to file for bankruptcy so that they can stop creditor harassment, wage garnishments, liens and other collections attempts. An attorney can be of assistance with the process.