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Negotiating credit card debt can be complicated

It is a well-known fact that Americans are carrying more debt than ever, thanks in part to years of financial instability courtesy of the 2008 recession. However, for Michigan residents and Americans across the nation, credit card debt remains the most pervasive form of debt, and one of the most difficult to discharge. However, some experts believe we should not allow haste to dictate how we choose to deal with this debt, or risk running afoul of pitfalls along the way.

One popular way to reduce or otherwise manage credit card debt is to move a balance from a high-interest card to one with lower interest or, even better, a card with a zero-interest first year policy. It can be tempting for big spenders to close the high-interest card directly thereafter, but experts warn this might not be a good idea. Even if it's bad credit, it still constitutes credit history.

The analogy presented in this report refers to a resume - if one is fired after 10 years of faithful service at a particular job, that does not invalidate the work experience and professional development garnered in those 10 years. Similarly, bad credit history is still credit history and better than none. It may be a better idea to keep the credit account open and simply not use the card -- cutting up the physical card if need be to facilitate better spending habits.

Michigan residents struggling with credit card debt are aware of how insidious the threat of such debt can be. Thankfully, options are available for those struggling with high volumes of debt. Working on debt consolidation, financial planning and even filing for bankruptcy can all help to mitigate debt and bring it down to manageable levels.

Source:, "Drowning in debt? Don't make this credit card mistake", , March 31, 2014

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