Credit Card Debt
Unpaid credit card bills is another common reason Americans have large amounts of debt. This happens when cardholders spend more than they earn and have no plan for how they can pay back what they charged to their credit cards.
Some people go into credit card debt because they forget to make their payments each month. However, the most common reason people go into credit card debt is because they can’t afford to pay interest on the money they borrow.
Managing Your Credit Card Debt
If you’re in credit card debt, you might worry you’ll never be able to pay off what you owe. However, there are various solutions you can take advantage of to help you regain control of your finances. For example, you can:
- Consolidate your credit card debt. If you have debt spread across various cards, you might be able to transfer all of your debt onto one low-interest credit card. This option isn’t for everyone, but it can help you if you have trouble keeping track of what you owe each month.
- Pay off high-interest cards. Overspending puts people in debt, but high-interest rates usually keep them there. To decrease the overall amount you owe, pay off any cards with high-interest fees as soon as possible.
- Consult with a financial advisor. If you need advice for your specific situation, contact a trustworthy financial advisor in your area. These professionals can help you find the best debt management solution for you.