Getting out of debt is something that takes work, especially if some of it involves credit card bills. The interest alone on credit card bills can sometimes mean that making only the minimum payment isn't enough to effectively pay off the balance. For Texas residents who are drowning in credit card debt, there are two main methods they can use, which one columinst has referred to as the avalanche method and the snowball method.
The avalanche method involves making more than the minimum monthly payment on the credit card account with the highest interest rate. By making more than such minimum payment, the balance is knocked down faster and the interest that accumulates isn't as high. The downside to this method is that it sometimes isn't really worth it if the interest rates on the credit card accounts are almost the same.
The snowball method involves paying more than the minimum payment each month on the credit card bill with the lowest balance. This method is the preferred method of some simply because of the psychological effect since the bill will be paid off the fastest and the person will have one less bill. No matter which system a person uses, once a bill is paid off, the money that was used to pay off that card is then shifted to pay for the next credit card on the list. This allows the credit card bills to be paid off in a systematic manner that strategically reduces the debt load of the person paying.
There are some instances when paying off debts in this manner isn't possible. When that is the case, debt settlement or bankruptcy might be viable options. An attorney might provide advice about the various available alternatives to a client who is seeking debt relief.