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.
Using Inheritance Wisely To Pay Debts
Homeowners received a large inheritance and aren't sure how to use it to pay down their debts. Paying off credit card debt is the first step. After the debt is paid off, you can start thinking of investments that are right for you.
Frequently Asked Consumer Questions
Where can consumers find their free annual credit report? How can consumers cut telemarketer calls? What do consumers need to know about estate planning? Here is consumer advice to answer common questions.
Nine Reasons To Pay Off Your Credit Card Debt
While paying the minimum amount owed each month, on time, shouldn't damage your credit score, there are good reasons to pay off your credit card debts, not to mention your other loans like auto loans and school loans, and wipe your credit slate clean. Stop paying interest. Keep credit open in case of an emergency. Improve your credit to be able to receive the best credit card offers.
How To Pay Down Your Credit Card Debt
When you're ready to get rid of credit card debt, making smart choices can help you eliminate your balance faster. First, stop adding to the debt, and wait until you have the cash to make any purchases. When it comes to paying off your credit card debt, the smartest move you can make it to pay the debt carrying the highest interest rate first.
Choosing A Credit Counselor
The average American family has as much as $8,800 in credit card debt and as many as 20 different lines of credit open. Reaching out to a credit counseling service can be intimidating if you don't know what to look for. If you have debts and want to pay them off, you should choose your credit counseling agency carefully.
Take Charge Of Your Credit Score
Many people who are in debt end up getting suckered by credit repair scams that promise vastly improved credit scores (for a large upfront fee) but can't deliver without doing something illegal, like setting up a fake social security number. Others end up working with a credit consolidation company, but are unaware that being in a debt management program can torpedo their credit scores. There are endless reasons why someone might fall into financial difficulties, but there are only a few ways you can repair your credit history and credit score - none of which include hiring someone else to do it for you.
Build Credit Using Credit Cards, Not Debit Cards
Have a good credit score and history is critical to buying a home. What can you do if you're trying to improve your credit history to buy a home? Use credit cards wisely. Debit cards do not count toward building a credit history and score. If you can't qualify to get a credit card, you should set up a secured credit card with your bank.
Pay Off Credit Card Debt
You'll never get anywhere in life with credit card debt. Pay off your credit cards before making any large purchase like a house. Only charge what you can afford to pay off at the end of each month.
Interest Rate Changes Affect Consumers
Whenever the Federal Reserve raises or lowers interest rates, those changes affect the loans that consumers have that are tied to those rates. Interest rate changes affect mortgage loan rates, credit card interest rates and the rates that government bonds pay. Learn how the Federal Reserve may lower interest rates to try to boost the economy.
Debt Management Program: How To Research One
One way to pay down credit card debt and avoid bankruptcy is to enroll in a debt management program through a credit counseling service. But before enrolling in a debt management program you should research the credit counseling agency who offers it and make sure that the credit counselors are educated and qualified. Learn what questions to ask before enrolling in a debt management program.