When people are asked how much they weigh or how old they are, they naturally may be shy about divulging this information in Pennsylvania. However, a new Internet poll shows that people generally are even more embarrassed about revealing how much debt they have and if they are likely in need of debt relief. They are also leery about discussing their credit scores.
When a person has an overwhelming amount of debt due to credit card use, this is a signal that the individual may be living dangerously, from a financial viewpoint. This is because the more debt a person has, the lower his or her credit score may be. A few tips can help a person to deal with high amounts of debt.
For example, a consumer can try to negotiate his or her credit card interest rate. Sometimes, a person may get a lower rate simply by asking the company for it. A lower interest rate can help a person to get rid of the overbearing debt much more quickly and inexpensively.
It also may help to use one's savings fund to get rid of debt. Some Pennsylvania residents owe money on their credit cards in addition to having money in the bank. In this case, it makes sense to use bank funds to pay off the cards because money in the bank earns less than a percent of interest on average. Meanwhile, the average interest rate on a credit card is nearly 16 percent. If a person's debt has gotten completely out of control and he or she has no way of reasonable paying it off, filing for personal bankruptcy may help the person to receive much-needed debt relief.
Source: ABC News, "6 Steps to Fix Your Credit Score and Credit Card Debt So They Won't Be An Embarrassment", Elisabeth Leamy, April 28, 2014