Some people in Kentucky who have both credit card and student loan debt may wonder where they should direct most of their efforts in paying off those debts. They may be familiar with the debt snowball method, which says that the best approach is to pay off the lowest balance first. This can be a psychological boost that can help keep people motivated. However, there is another approach that may be better for some.

The other theory of debt reduction is that the debt with the highest interest rate should be paid off first. This is nearly always credit card debt. People who have good credit may also want to consider a balance transfer card that offers a period of zero interest. This period might last anywhere from six to 18 months or even longer in some cases. The person should then focus on paying down the card while there is zero interest.

Once the credit card debt is paid off, the person can then take that money and put it toward the student loan payments as well. While they can continue using the credit card, they should not charge more on it than they can pay off each month.

People who are struggling to pay off their debts might want to talk to a bankruptcy & debt relief attorney about their options, including filing for bankruptcy. While student loans cannot be discharged in a bankruptcy, discharging other debts can make it possible to focus just on the student loans. Other debts that cannot be discharged in a bankruptcy include child support and most tax debts. One advantage of filing for bankruptcy is that it puts an immediate stop to all creditor actions, from phone calls to foreclosure and more. People who file for bankruptcy are generally able to keep some assets.