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.
Finding a way to reduce student loans and credit card debt while still saving money can be like walking a tightrope. Sometimes in order to save money and reduce student loans and credit card debt, you may have to take on a part-time job to generate extra income. Don't do just one or the other; instead try to reduce student loans and credit card debt each month, while also putting some money away in savings.
What happens if you are ready for retirement and you have no savings account? It means you may have to work longer than you hoped to and push off retirement a bit. Pay off your credit card debt, stash away as much cash as possible, and try to rebuild your savings.
Learn how to setup an online smart payment and reduce your credit card debt. By paying multiple times during a month, you can reduce the interest you pay on your credit card debt. Avoid late payments by setting up accounts online with all of your credit cards.
Paying credit card bills online can improve your credit history and your credit score. Just as you can prepay your mortgage, and save thousands of dollars in interest, you can also prepay your credit card debt, saving hundreds or thousands of dollars over the life of the loan. Set up online payments to streamline the payment process and avoid late payments. Setting up online payments eliminates the possibility that you'll pay late because your payment got lost in the mail. Late payments are not only expensive, but it can also damage your credit history and lower your credit score.
Here's what financial planners have known for years: Every dollar you spend to prepay a debt (any kind of debt) actually earns you the interest rate the debt carries. To rebuild your savings, simply take the money that you would have spent each month on your debt, and keep tucking it away into your savings account.
Many Americans owe a large amount of credit card debt. To pay off that credit card debt, some of them enroll in a debt management program through a credit counseling agency. According to CCCS of Greater Atlanta, women usually seek help repaying debt before men. When a debtor owes too much to pay back, the credit counselor may suggest filing bankruptcy. Learn about what services a credit counseling agency offers as part of a debt management program here.
Take advantage of balance transfers to pay off credit card debt with lower interest rates. But, you should keep your old cards open, even if you're not using them. One of the things that helps raise your credit score is having credit cards accounts open for a long period of time. So, if you have a card for 10 years, it's better than having a card for one year and closing the account.
In the continuing search for higher profits, credit card companies are raising fees, shortening grace periods and trying to find ways to get you to pay more in interest. Consumers need to know more and more to avoid credit card traps. Learn about the terms of your credit card and stay aware of any changes in order to avoid extra fees and traps.
A reduction in the average amount of credit card debt, an update from the IRS, and new loan purchase limits are just a few news items in the 2003 financial news round-up. In 2003, the average credit card debt for the typical American family dropped form $3,200 to $2,300. Also in the 2003 Financial Roundup, the IRS is testing a system that will allow them provide resolutions to a variety of problems electronically. The IRS also plans to get more Americans to file their taxes electronically.