Lefkovitz & Lefkovitz

Nashville Office 615-256-8300       Cookeville Office 931-400-2218

Nashville Office 615-256-8300
Cookeville Office 931-400-2218

Serving all of Middle Tennessee’s Bankruptcy Needs

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Getting credit card debt under control for retirees

On Behalf of | Oct 13, 2016 | Chapter 7 |

Many retirees who are living in Tennessee struggle with high credit card debt balances. Among all U.S. households, the average credit card debt is $5,700. For people who are ages 65 and older, the average debt is $6,351. There are several things retirees can do to control their debt as well as to obtain debt relief.

People might want to start by paying off their highest-interest debt first before moving on to tackle debt that has lower interest rates. People with several cards can start by ranking them according to the interest rates so that they know which one to pay off first. People who have just one credit card should review their statements because different types of transactions might carry different interest rates. The minimum payment will go to the lowest-interest debt activity, but additional amounts that are paid will go to the highest-interest debt activity. This means that paying more than the minimum will help to pay off the debt faster.

People should also try to avoid late fees. They might want to set up automatic withdrawals from their bank accounts so that they always pay on time. If people are able to pay off their credit cards, they should then try to make a habit of paying the balances in full each month going forward.

If the credit card debt level is high enough that it is unmanageable, people might want to consider filing for bankruptcy. Doing so may help them to get the debt relief that they needs. A bankruptcy lawyer may assess a person’s financial situation and then provide advice about whether or not bankruptcy is a good idea.

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