By Alan Prahl
Do you have credit card debt? Credit cards have become the primary source of loans for millions of Americans. While some people take on debt because they are optimistic about their future, credit cards are also used as a safety net to pay for necessities like car repairs, home maintenance, groceries and medical bills.
Credit card debt levels are rising. NerdWallet’s recent analysis of credit card debt identifies revolvers — people who carry over their credit card balances from month to month. Revolvers owe $6,929 and will pay an average of $1,142 in interest in 2019.
With rising interest rates, interest rates on credit card debt are likely to increase as well, making past and future purchases more expensive. People who carry a balance on their credit cards will pay hundreds or thousands of dollars more on their credit card debt.
To pay off credit card debt:
- Stop using your cards
- Make at least the minimum payment on all cards
- Make an extra payment on one of the cards
- When that card is paid off, apply your extra payment to another card
To save money and reduce debt stress, pay off your credit card debt. Instead of using credit cards as your safety net, have money in a savings account. If you need help reducing debt or saving money, FISC offers low-cost credit counseling and financial coaching www.fisc-cccs.org