Credit card debt is a financial nightmare, since exorbitant interest rates may quickly spiral out of hand. However, staying out of debt might be tough at times.
This was especially true for many Americans during the coronavirus pandemic when skyrocketing unemployment and stay-at-home orders wreaked havoc on the economy. If you’re struggling with credit card debt for any reason, consider these suggestions from Yahoo to help you pay it off faster.
- Stop using your cards – It’s difficult to pay off credit card debt if you keep using them. This may be difficult to resist for individuals in the midst of a financial crisis, but if you’re only spending on your cards out of habit, you may never get out of debt.
- Increase payments – Simply paying off your credit card balance isn’t enough to get you out of debt. If you want to make any progress in paying off your debt, you’ll need to increase your payment amount.
- Use a 0% balance transfer offer – If you don’t think you’ll be able to pay off your debt right away, a 0% balance transfer might buy you some time.
- Consolidate to a lower-cost loan – When it comes to paying off credit card debt, the first guideline is to stop bleeding as soon as possible. Transferring your debt to a lower-cost loan, in addition to halting your credit card spending, maybe a temporary solution.
- Negotiate with your creditors – The majority of consumers accept the interest rate imposed by their credit card issuer without question. However, you might be shocked to find that you might be able to lower your interest rate.
You’re not alone if you’re having trouble paying off credit card debt. According to a recent report from Lending Tree, Americans owe a total of $804 billion on their credit cards, with the average delinquent debt per borrower totaling $6,569.
Unfortunately, as of the third quarter of 2021, the average credit card interest rate, or annual percentage rate (APR), was 14.54 percent. This indicates that interest costs account for a considerable portion of the average consumer’s credit card payment.
According to CNN, tt also implies that paying off credit card debt is more difficult (and expensive) than it has to be for individuals paying this rate or even higher. Fortunately, you have a variety of options for managing debt and paying off your credit cards once and for all.