Credit cards are helpful financial tools. If you qualify for an account with no annual fee, for example, and then optimize its rewards, you can make money by spending money. For a lot of people, though, credit cards end up causing trouble. It’s easy to buy more than you should when there’s no exchange of cash, which is how many Americans find themselves owing more than they can handle. Fortunately, it’s possible to pay off a considerable amount of credit card debt by following a few simple steps. 

How to Handle Your Credit Card Debt

1. Evaluate the Situation 

Before starting an aggressive repayment plan, it’s important to determine how much you owe to whom. Doing so allows you to devise a set time frame for paying back every creditor. When evaluating your finances, it is also wise to think about why you accrued credit card debt in the first place and how to avoid doing so again. 

2. Devise a Reasonable Budget

You should already have a rough idea of the household’s monthly expenses but comb through the past six to 12 months of transactions to create a budget. After accounting for necessities, like food, housing, and health insurance, shovel as much as possible toward your debt. If you have multiple cards, make sure to account for each one’s minimum monthly payment in the budget. Now is also the time to review any balance transfer offers to see if consolidating makes financial sense. 

3. Use All Possible Resources 

When paying off debt, use every available resource for increasing your income. For instance, you can sell products or services outside of your normal day job, take on part-time work, or liquidate assets that are not part of a retirement plan. In addition to making more, try to also spend less. Sticking to the budget you devised for a few months should reveal a few areas where the entire family can cut back. 

Although the steps proposed above can eliminate a moderate amount of credit card debt, there are certain scenarios in which no financial footwork will help. If you owe an overwhelming amount of money, declaring bankruptcy may be the best way to proceed. To discuss your options with a debt relief lawyer, turn to Robert A. Schwartz. Based in Rochester, NY, this firm offers quality guidance to help clients get a fresh start. Request a free bankruptcy evaluation by visiting him online or call (585) 334-4270.