NASHVILLE, Tenn. (WTVF) — If credit card debt has you feeling stressed, you’re not alone.
Yeah, credit cards can be a helpful tool, but it's easy to quickly fall behind and for some, it can be a challenge to catch up.
It can feel like you’ll never get ahead. But there are ways to take back control and pay down your debt.
“I started to feel the crunch when I started to use credit cards for just daily essentials,” said Jennifer Paez.
For Paez, more expenses and less money coming in meant one thing: she had to lean on credit cards just to stay afloat.
“I knew that that was a big red flag,” she added.
Jennifer is far from alone. Americans owe a combined $1.18 trillion in credit card debt, and the average balance per household is around $6,000.
With many credit cards with interest rates above 20%, it’s tough to make a dent. So what can you do if you’re struggling to pay down your credit card debt?
Consumer Reports Lisa Gill says, try to hit pause on using your cards and look for
ways to cut back on monthly spending.
“Take any extra money and pay down the debt on the card with the highest interest rate," said Gill. "Doing that helps you save more in the long run because you’re tackling the most expensive debt first.”
If your credit score is in good shape, you could move your high-interest balance to a card that offers 0% interest for the first year or so. Just try to pay it off before that period ends, or the usual high interest kicks back in.
Try adjusting your payment dates to line up with your payday. It can make staying on top of bills a lot easier. Some credit cards let you pick your own due date.
Set up automatic payments. That way, at least the minimum gets paid on time, and you avoid late fees.
But if your debt is becoming too much, pick up the phone and call the credit card company and explain your situation. Ask for a lowered interest rate and if they offer a hardship plan
“The credit card company may temporarily lower your interest rate, reduce your minimum payment, or even waive certain fees usually for a few months up to a year,” said Gill.
You can also contact a reputable nonprofit credit counseling agency. They may be able to lower your interest rates and consolidate your debt into one manageable monthly payment.
That’s what Jennifer did. She worked with the nonprofit credit counseling agency Money Management International - which helped her take control of her debt.
Here’s another step that really helps: Take a few minutes each week to review your finances.
See what’s coming in, what’s going out, and what’s due soon. Catching issues early gives you time to adjust before a payment is missed.
Do you have more information about this story? You can email me at jennifer.kraus@newschannel5.com.
Music City is built on the talents of songwriters - and I can guarantee you've never seen a better collaboration than this! You'll be cheering and crying... and glad you took time to watch this story. Enjoy!
- Carrie Sharp
