Many people struggle with credit card debt, but options exist for them to regain control of their finances. According to CNBC.com, the average balance for credit card holders across the U.S. exceeds $6,100.
Considering all the options available to them may help people determine which debt relief path suits their situations, needs and goals.
Borrowing money from family or friends
Sometimes, people’s credit scores will not allow them to seek a personal loan through a bank. In such cases, they may turn to family and friends to lend them the funds to pay down their outstanding balances.
Taking out a personal loan
Similar to asking family or friends to borrow money, taking out a personal loan affords people the option of consolidating debts spread over several cards into a single balance. If they qualify, for instance, people can then take the funds and pay off their credit cards. Then, they need only keep up with the one repayment schedule.
Working with a debt relief company
According to the Federal Trade Commission, working with a debt settlement company offers another option for people struggling with credit card debt. Typically, these companies act as intermediaries, negotiating settlements between the debtors and creditors.
Filing for bankruptcy
Particularly if faced with debts beyond their credit card balances, people also sometimes consider filing for bankruptcy. Depending on their circumstances and the option they choose, filing for bankruptcy may end with the discharge of some outstanding debts, such as some credit card arrears.
When seeking to get their credit card debt under control, people should look at all the available options. It may benefit them to consider the potential upsides and disadvantages of each to determine which they should choose.