If you’re in debt, you’re not alone. According to the Federal Reserve Bank of NY, “total household debt increased by $286 billion, to $15.24 trillion in the third quarter of 2021.”
Right now there are a lot of companies who claim they will help you get out of debt. But before you hire a debt relief company, first take a look at your credit cards.
See if you can use a balance transfer offer to switch to a card with a lower rate.
Do your research through the Better Business Bureau; consumers nationwide filed more than 21,000 complaints against credit card companies in 2020 and 2021 with the BBB. The organization suggests you read the terms and contract very carefully as there may be big penalties if you miss a payment.
If you have multiple cards, decide which debt-paying strategy is best for you. Some experts recommend paying off cards with the highest interest rates first, but others recommend you pay off cards with the smallest balances first.
Also, try calling your credit card company to see if they will lower the current interest rate you have on a credit card.
Be very careful opting for help through just any debt relief company, as it could be a scam.
Some companies will promise to negotiate your debts on your behalf if you pay them a large up-front fee. It’s a major red flag if a debt relief company tells you to stop paying your bills altogether and pay them…
