During the pandemic, many Americans were able to save quite a bit of money. They spent less on travel, dining out, and other leisure activities. And, many individuals received pandemic-related financial assistance that allowed them to grow their savings. Now that society has opened up, Americans are starting to spend more and household credit card debt has grown greatly. According to Bloomberg.com, Americans now have a combined credit card debt of $986 billion. And with credit card interest rates climbing, paying off debt can become more difficult.
Here are a few ways to help reduce credit card debt:
- If you have more than one credit card, consider finding the card with the highest interest rate and working on paying off that card first.
- Consider transferring your debt to a new credit card with an introductory interest rate of 0%. Use the new credit card and pay off as much as possible before the rate goes up.
- Bring in more income to help pay off your debts. You could do this by taking an additional job, asking for a raise if you deserve it, and/or taking on more hours at your current job.
- Talk to your credit card company about getting a lower interest rate or working out a plan for paying back your debt.
- Save money by eliminating any monthly charges for things you don’t need. For example, end magazine subscriptions, cable TV subscriptions, gym subscriptions, or meal subscriptions. You can check out magazines from the library, get a cheaper streaming service, or exercise and cook meals at home.
-Allison G.
Sage Personal Finance 