- ORIGINAL NEWS
Americans have $1.13 trillion in credit card debt. Here are some expert tips to help pay yours off
- SUMMARY
Americans are facing a record high of $1.13 trillion in credit card debt, making credit cards an Achilles heel for many individuals.
Amidst persistent inflation and rising interest rates, experts suggest proven strategies to tackle this high-interest debt.
Options include signing up for a 0% balance transfer credit card, which offers an introductory period with no interest on transferred balances, helping to aggressively pay down the debt.
Refinancing into a lower-interest personal loan is also an option.
If these are not feasible, consider asking your card issuer for a lower APR.
To repay your debt effectively, choose between the avalanche method, prioritizing the highest-interest debt, or the snowball method, focusing on paying off smallest debts first.
Whichever method you select, make minimum payments on all debts and allocate extra cash towards accelerating repayment on one specific debt.
Stay dedicated to the chosen method to gain momentum and pay off your credit card debt as quickly as possible.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“There are some tried-and-true payoff strategies that can help, experts say.”
“But there are proven pay-off strategies that work, experts also say.”
“Here is their best advice for tackling that high-interest debt once and for all, including one analyst’s “favorite tip.””
“Cards offering 12, 15 or even 21 months with no interest on transferred balances are out there, he added, and “these allow you to consolidate your high-cost debt onto a new card that won’t charge interest for up to 21 months, in some cases.””
“Those offers are “just about the best tool you have against credit card debt”, added Matt Schulz, chief credit analyst at LendingTree.”
“Using either can help consumers pay off debt as much as 100 months sooner, according to a separate analysis by LendingTree.”
Negative
“Americans are steadily falling deeper into credit card debt.”
“Not only are more cardholders carrying debt from month to month but more are increasingly falling behind on payments, recent reports show.”
“Even though dealing with $1 trillion in credit card debt can be overwhelming, the reality is that this figure is expected to ascend.”
“Americans are still contending with lingering inflation and the ongoing rise in interest rates, which forces them to depend more heavily on credit cards.”
“Already, credit cards are one of the most expensive ways to borrow money.”
“The average credit card charges a record high 20.74%, according to Bankrate.”