For Tennessee residents who are struggling with credit card debt, a hike in interest rates can make paying that debt off even more difficult. However, there are strategies they can use to reduce interest rates.

One method is a balance transfer. Many credit cards will offer these, and in some cases, there is no transfer fee. A transfer is usually not the best approach for a debt that a person can pay off in six months or fewer, but it can be useful for longer periods. Furthermore, balance transfer fees will be worthwhile in most cases if it takes at least a year and a half to pay off the debt. Usually, the transfer must be between cards issued by separate banks. Balance transfers may also initially offer a lower monthly payment, but it is best to resist these and stick to the usual payment schedule.

Another option is a personal loan. One advantage this offers over continuing to pay off the credit card debt is that it generally has a fixed interest rate. However, the monthly payment might be higher than the credit card’s minimum payment, so people should make sure they can afford it. Finally, another solution is to call the issuer and inquire about getting a lower interest rate. Companies may be more willing to do this than some people expect.

Unfortunately, despite all of these measures, some people may still find themselves struggling with debt. This can happen to many people for many different reasons, and people should not feel guilty or irresponsible because they cannot meet their obligations in a timely manner. A Chapter 13 bankruptcy may be one way a person can get a fresh financial start without losing a major asset such as a home. An attorney can explain how the process works and what the eligibility requirements are.