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Experienced lawyers, driven to succeed on your behalf.


Experienced lawyers, driven to succeed on your behalf.

It is sometimes essential to put a bill on a credit card. It might be a medical bill, a car repair or something more essential such as food, gas or utilities. Hard times can befall anyone in Harrisburg, but ever-increasing credit card bills only makes an already stressful situation worse. There are ways to address credit card debt, though. One approach is called the “snowball” debt repayment method and the other approach is called the debt “avalanche” repayment method.

What is the debt “snowball” method?

If you played in the snow as a child, it is likely you saw how a small snowball could be rolled to eventually form a large snowball. The “snowball” method of debt repayment is not unlike that. You start by paying as much as you could towards the card with the lowest balance, leaving interest rate aside. Once the smallest bill is paid off, you focus on the next smallest bill, etc. While you are paying extra towards the lowest bill you will continue paying the minimum amounts due on your other debts.

What is the debt “avalanche” method?

The debt “avalanche” method is somewhat the opposite of the debt snowball method. In the debt avalanche method, you start putting as many resources as possible towards the debt with the highest interest rate. Once that debt is paid off you move on to the debt with the next lowest interest rate. While doing so, you will continue making the minimum payments on your other debts. This approach lets you pay less in interest overall.

Bankruptcy may also be an option

If you are facing overwhelming debt that neither the debt snowball nor debt avalanche methods can conquer, a viable option is filing for bankruptcy. Chapter 7 bankruptcy allows you to have a bankruptcy trustee sell your non-exempt assets. Chapter 13 bankruptcy allows you to enter a three- to five-year debt repayment plan. Both Chapter 7 bankruptcy and Chapter 13 bankruptcy will dismiss most remaining debts once the bankruptcy process is complete. For some, bankruptcy is the lifeline they need to make a fresh start and move forward on solid financial footing.