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Consumers may face overwhelming debt after holiday shopping

Many people are glad to have the holiday season over with and are now looking towards beginning the new year. On the other hand, dealing with credit card debt accumulated during holiday shopping is how many will be starting 2014. However, there are some things which consumers in Texas can do in order to alleviate some of the overwhelming debt on their credit cards.

First, it is a good idea for one to examine one's overall situation by writing down a summary of the debts owed, including the monthly amount, total balance due and the date each payment is due. Many consumers can even negotiate with their creditors to reduce their interest rates. This results in more money being available to pay off the balance, which will help a person regain financial stability that much quicker.

Also, when paying back credit card debt it is important to be strategic about doing so. A consumer should pay off the credit card with the highest interest rate first, while still making minimum payments on the other credit cards. One may also wish to consider transferring high interest credit card balances to credit cards with lower interest rates.

On the other hand, despite doing everything possible many people in Texas will still find themselves facing overwhelming debt from credit cards. Creditors may begin to send demand letters and may even file lawsuits in order to recover the debts owed, which can result in the loss of one's assets if he or she loses in a court battle with a creditor. However, one may be able to avoid this by filing a Chapter 7 bankruptcy which has the power to potentially discharge all credit card debts.

Source: thestreet.com, 10 Tips for Reducing Credit Card Debt in 2014, Bill Hardekopf, Dec. 30, 2013

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