Credit Card Debt

Coronavirus, COVID-19, Credit Card Debt, Debt Relief

How to Manage Credit Card Debt After Losing a Job

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Many South Floridians are finding themselves out of work due to the coronavirus (COVID-19) pandemic. This loss of income can be devastating and make it difficult to continue paying monthly expenses, including credit card debt.

Before the crisis hit, credit card debt had reached an all-time high after the Federal Reserve reported that the fourth-quarter of 2019 credit card debt increased by $46 billion to $930 billion nationwide. It is expected that balances will only increase as Americans find themselves shut in with limited income being earned. Additionally, serious delinquencies were on the rise at the end of 2019, and these numbers are also expected to trend upward, specifically for consumers between the ages of 18 and 29.

Bankruptcy Law, Credit Card Debt, Debt Collection, Debt Relief

Tips for Gen. X’ers Battling Credit Card Debt

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Credit card debt is a problem that countless consumers struggle with. But according to recent data provided by Experian, Gen X consumers carry more credit card debt than any other generation.

Experian’s data showed that Gen X holds the highest average credit card balances at $8,658. As members of Gen X approach middle age, many of them raising families, they are also struggling to pay down credit card debt they have been holding since their 20s.

Credit Card Debt, Debt Relief

Understanding the Difference Between Good and Bad Debt

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Debt can oftentimes come with a negative connotation, but not all consumer debt is created equal. In fact, some types of debt are better than others. It is important for consumers to know the difference between the two types before taking on additional debt.

Good debt, for the most part, is debt that is used to help a consumer pay for goals or purchases that will enhance his or her overall wealth. Debt in this category includes mortgages and student loan debt, as well as small business loans. These types of debt tend to carry low interest rates and are tax deductible. Good debt is associated with a piece of property or collateral to guarantee the debt, although that is not always the case, such as with student loans.

Credit Card Debt, Debt Relief

Debt Among Older Americans Reaches Record High Levels

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American seniors have seen their debt levels increase significantly over the past two decades.  It is estimated that the total debt load carried by American consumers over the age of 70 years old increased by 543% between 1999 and 2019. It now stands at a record high of $1.1 trillion, according to the Federal Reserve Bank of New York.

Individuals who were in their 60s saw their debt increase by 471%, bringing their total debt load to $2.14 trillion. Seniors were not the only group who saw large increases in their debt, but these two age groups saw the largest increases.

Bankruptcy Law, Credit, Credit Card Debt, Timothy Kingcade Posts

Top Reason Americans Are Carrying an Average Credit Card Balance of Over $6,200

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Credit card debt is a burden for many consumers. Most have a complicated relationship with their credit cards. On one hand, disciplined and modest use of a credit card to make certain purchases can help establish a good credit score. On the other hand, if the balance on a credit card is not paid in full each month, and on time, the balance can quickly spiral out of control.

According a recent study by CompareCards, American consumers are carrying an all-time high of $1.1 trillion in credit card and other types of revolving debt. This figure is up nearly 20 percent from where it was just ten years ago.

Credit Card Debt, Debt Collection, Debt Relief

U.S. Cities Seeing the Highest Increase in Millennial Debt

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Consumer debt is increasing nationwide, affecting individuals in all types of economic and sociographic groups. However, millennials seem to be the generation hit the hardest. In fact, millennials living in certain U.S. cities are hurting the most when it comes to their debt, according to a recent study from LendingTree.

LendingTree found that individuals in the millennial generation, born between the years 1981 and 1996, carried large amounts of auto debt, as well as student loan debt. These two categories made up the biggest portion of non-mortgage debt carried by millennial consumers.

Credit Card Debt

The Worst Ways to Pay Off Credit Card Debt

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Credit card debt is a major problem that plagues so many Americans, with the total amount of credit card debt estimated to be over $870 billion in total. According to data from Experian, the average credit card balance is $6,629. If you are struggling with credit card debt, certain behaviors can be counterproductive and make the problem worse when trying to pay down a credit card balance.

Skipping Payments.

One of the worst things a consumer can do is to skip a credit card payment, intending to pay it next month or forgetting completely. When it comes to debt- unfortunately, out of sight, out of mind does not work. Missing just one month’s payment can result in a sharp increase in interest rates, as well as late fees. The higher the interest rate is, the less likely it is that the cardholder will make any progress towards paying off the principal every month.

Credit Card Debt

4 Habits That Will Help You Pay Off Debt And Remain Debt-Free

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Paying off credit card debt can seem like a never-ending battle. If someone is carrying a high balance on a card with a high interest rate, it can seem like a dent will never be made toward paying off the total amount, especially if that person is only making minimum payments.

Here are some tips to help you pay off credit card debt and keep it off.

  1. Put money into a savings account.

It may seem counter-intuitive, but to pay off credit card debt, it helps to also put money away into savings. According to recent statistics from Bankrate, 29 percent of Americans have more credit card debt than they have money in emergency savings. Even worse, 28 percent of them reported having no emergency savings at all.  When a financial crisis hits, it only takes one unexpected expense to completely drain a small savings account or push that person into debt.

Credit Card Debt, Debt Relief

Tips for Paying Down Holiday Credit Card Debt

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Now that the holidays are over, consumers are about to receive a New Year’s “surprise” in the form of a credit card statement. Those who already had a substantial balance on their credit cards, the extra holiday spending has only added to those balances. According to a report from credit bureau, Experian, the average credit card balance has climbed to $6,629.

You are probably wondering the next steps to take to pay down holiday debt before the interest starts mounting. We recommend taking a realistic approach in paying down the balance over the course of the first quarter of the year. By calendaring and planning out the payments, the cardholder can visualize the end goal of paying off the debt.

Credit Card Debt

Credit Card Debt Worse for those with High Income

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Credit card debt in the U.S. has reached a high of $830 billion, making a six percent jump since last year. Next to personal loans, credit card debt is the second-fastest growing category of debt, according to a recent Experian report. It is reported that the average American consumer carries a balance of $6,200 on his or her credit card. With balances that high, it can be quite difficult for the average consumer to pay off his or her debt.

It turns out that the consumers who are carrying the most credit card debt are those with a net worth of over $100,000 or more, according to a recent study from Bankrate.  Adults who carried net worth between $100,000 and $199,999 are the most likely to carry credit card debt, followed by individuals with net worth between $200,000 and $1 million. People who had a net worth over $1 million had the least amount of credit card debt.