Tag: credit card debt

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, 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.

Credit Card Debt, Medical Debt

How to Keep Medical Debt Off Your Credit Cards

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With the cost of medical care increasing every year, many Americans are struggling to pay their medical bills. According to a recent study from NerdWallet, medical costs have increased 33 percent since 2009, while the national median household income has only increased 30 percent. To keep up with these costs, many consumers are forced to pay for their medical bills with credit cards. The problem is credit card interest rates can range anywhere from 10%-30% and come with additional fees and costs if timely payment is not made. Medical bills are expensive and paying them with your credit card will only add unnecessary interest fees to your bills.

Here are some tips that can help you avoid having to put medical bills on a credit card.

Credit Card Debt, Credit Score

Reasons to Check Your Credit Score Twice this Holiday Season

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When it comes to monitoring a credit score, it is important to pay all bills on time and not max out a credit card when relying on one for holiday spending. However, another factor, known as the credit utilization ratio, plays a major role in a consumer’s FICO score. In fact, this number accounts for 30 percent of the average consumer’s FICO score, and it is the second most important part of a person’s credit score next to paying bills on time.

To figure out what this score is, the consumer needs to add up credit limits across all his or her credit cards and then add up the outstanding balance on each card. Divide the total balance owed by the total limits and multiply that by 100 to determine the percentage or credit utilization ratio.

Credit Card Debt, Debt Relief

Credit Card Debt Can Be Bad for Your Health, According to Recent Study.

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Having large amounts of credit card debt can not only stress you out, but according to a new study it can also be bad for your health. The high levels of stress associated with the debt can get so serious that it can adversely affect the person’s health, according to a study from CompareCards.com.

According to the report, fewer cardholders can pay their balances in full at the end of each month. Anything left on those balances roll over to the next month and are compounded even more by interest. Before long, those balances inch closer and closer to the maximum balance allowed. One in three consumers surveyed by WalletHub reported being fearful that they will max out their credit cards when making a large purchase. Most of those polled said they considered a large purchase was anything more than $100.

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief

Credit Card Debt and the Effects It Can Have on Your Health

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Credit card debt can be a necessary evil, especially when it comes to establishing one’s credit score. However, the problems arise when that credit card balance gets out of hand to the point where the cardholder can no longer pay down the balance. The stress of mounting credit card debt can also affect a person’s health, according to a study from CompareCards.com.

The study shows that credit card debt is taking its toll on the health and well-being of many American consumers. According to the report, fewer cardholders can pay their balances in full at the end of each month. Anything left on those balances roll over to the next month and are compounded even more by interest. Before long, those balances inch closer and closer to the allotted credit limit. One in three consumers surveyed by WalletHub reported being fearful that they will max out their credit cards.

Credit Card Debt, Debt Relief

Credit Card Repayment Tips To Pay Off Debt – FAST

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If you are struggling with credit card debt, you are not alone. The average American household has around $8,161 in revolving debt, approximately $6,577 of which is credit card debt. There are ways to get out of credit card debt.  Here are some quick tips and repayment methods.

Repayment Methods

Several different repayment methods are commonly used and are successful in paying down credit card debt quickly. The first of these is the debt avalanche method, whereby the cardholder focuses on paying off the credit card with the highest interest rate first, then focusing on the card with the next highest rate after that one is paid and so on. The next method is the debt snowball method where the cardholder pays off the smallest debt first. It is hoped that this first debt paid off will motivate the person to continue making payments as he or she continues to pay off debt. Adjust your budget so that you can focus your efforts on paying down debt through one of these methods, this situation is ideal.

Credit Card Debt, Debt Relief, Medical Debt

How to Handle Debt in Retirement

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For many Americans, including those entering retirement, being in debt is a way of life. According to numbers published by the Transamerica Center for Retirement Studies, four in every 10 retirees report getting out of debt as a top priority. Many of them are struggling to the point where bankruptcy is their only way out. In fact, the Consumer Bankruptcy Project reports that one in every seven bankruptcy filers is over the age of 65.

One of the reasons why seniors are struggling financially has to do with living on a fixed income. All it takes is for one medical crisis to strike to set them back significantly in their financial goals. The hopes of entering retirement debt free can be difficult for those carrying large amounts of credit card debt and student loan debt. It also does not help that larger companies cut back or even took away pensions for American workers who pinned their hopes of retirement on these plans.