The average American has more than $9,000 in credit card debt. While having a credit card isn’t a bad thing, letting credit card debt pile up over time can place an enormous strain on your finances. Take a look at the articles, Q&A’s, blog posts and videos we have linked to this topic for ideas on how to handle credit card debt and your personal finances.
Lowering credit card debt is a noble objective for all of us. Maybe you need to switch credit cards? Finding a new credit card is a good move if your old credit card has high interest rates and stiff fines. Here's how to find a good credit card and what to watch out for.
Canceling open lines of credit may hurt your credit score. There are a couple of ways that canceling a credit card account can hurt your credit score. Part of your credit score is based on how long you've had credit accounts opened. So, a credit card with a zero balance that has been opened for 20 years will help your credit score more than a credit card account that has only been opened 6 months, 2 years, 5 years, or even 10 years.
What does it mean if creditors put "charged off" on your account? This is a negative reporting that could severely hurt your credit score. A collection agency can pursue you for debt that has been charged off. While it is legal for them to pursue you, they have to live within the rules of the Fair Debt Collection Act.
A person wants to know how to pay off a credit card and guarantee that there is no remaining balance. Ilyce advices once you get your next statement, call the credit card company and verify that if you pay the balance on the statement you will be able to pay off the balance in full. Then, write a check to pay off the card.
When you have debt on a lot of different cards, and the interest rate is different, you always should first pay off the non-deductible debt (debt other than a mortgage or home equity loan) that carries the highest interest rate. When all interest rates are the same, you should then look to which cards carry the highest percentage of your available credit.
Is it a good idea to sell investment property to pay off credit card debt? For this homeowner, selling her investment property might not be the best way to pay off her credit cards. A home equity loan on the investment property might be a better solution.
A prospective home buyer is saving to buy a house, but has a large amount of credit card debt. Money in a savings account might be better off paying down high-interest credit card debt. When the credit card debt is paid down, this home buyer can focus on saving for a down payment.
You are not responsible for a deceased parent's credit card debt unless you are listed as an owner of the card. You are not responsible for the credit card debt if you are just an authorized user. The person's estate becomes responsible for credit card debt in the event of death.
Student loans and credit card debt are haunting a couple. Should they put their cash in savings or pay off their debt? With volatile credit card interest rates, it's always a good idea to get that debt paid down quickly and find out where you can save money elsewhere.