As credit card debt increases, tips to tackle your expenses
Bankrate.com: 43% of users don’t know their credit card interest rate
InvestigateTV - One in three U.S. adults are now carrying credit card debt month to month, according to a Bankrate.com survey, a 29% increase over last year.
Even in a time of record high debt, the same study found 43% of credit card users don’t know their interest rates.
Bankrate analyst Ted Rossman said those with credit card debt said the survey showed a lot of people in debt are chasing rewards.
“Cash back is actually the favorite credit card feature of all Americans, including those with credit card debt,” Rossman said. “It doesn’t make sense to pay 20% interest just to get 2% cash back.”
Rossman shared several strategies to combat credit card debt:
- Look up the interest rates on all of your cards
- Create a realistic plan to pay off all of your cards
- Try to stop using your card with the highest interest rate
- Don’t purchase items for the cash back benefit alone
- Consider getting a 0% balance transfer card and move debt to it
- Also research the option of a personal loan at a lower interest rate to combine and pay off the total debt
If you need help dealing with debt, the Federal Trade Commission (FTC) has free resources available.
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