The New Year and its accompanying festivities might be a time of joy and excessive spending but, for some people, their merriment would be dampened by the huge credit card bills detailing their Christmas spending.
Credit card debts are fast on the rise, with average credit card debts in America hitting truly astonishing figures in 2019. As at January 2019, credit card balances were found to be at an all-time high and, with rates being on the increase every so often, the accumulated interest payments from consumers is calculated to be at billions.
Statistics and key findings on the Average American Household Debt and Total Outstanding U.S Consumer Debt shows that the average American family lives with a debt of $5,700, with 41.2% of households being in one form of credit card debt or another. A surprising $1,141 was also paid as interest in 2018 alone by the average U.S household, a number thought to increase some in this year, 2019.
Avoiding Credit Card Debt in 2019
Some credit card bills are simply astonishing while others are manageable enough. Some of you might have racked up pretty high credit card bills due to unforeseen emergencies like health bills and car repair bills. It does not necessarily have to be due to poor financial judgement and lack of shopping discipline that causes a person to get caught in the credit card debt of 2019.
Emergencies aside, some of you are in such bad debt simply because of your poor spending habits- living above your means. You purchase things that you can’t afford, and you know you can’t afford, but cover up by paying with your credit card. With the present economy, it is in your best interest to dissolve any delusions you might have about your financial state and live within your means.
Interest rates charged on your credit card bills are on the rise in 2019, and now is the time more than ever to tackle those credit card debts.
1- Avoid Credit Card Spending
Limit the way you use your credit card. Try to discipline your spending by using your credit card for only your needs. Try this and spend less on impulsive buys.
2- Cut Back
It would surprise you just how much money you actually spend on your daily coffee stop. No matter how little the pennies, anything saved would go towards helping clear up your credit card bill.
3- Pay More
Try to pay above just the minimum payment due on your statement. Remember that each month your debt sits and piles up, the interest rate increases. Don’t fall into the minimum payment trap and pay as much as you can monthly.
4- Get Help
Your credit card debt might be just so overwhelming it leaves you in depression, or is affecting your daily, personal and work life. It might be time for you to consider seeking an external party to help you sort through your credit card mess. Debt management plans are ideal for you, and you can hook yourself up with some of the best non-profit services that offer counselling on credit and financial issues. They might just be the way towards hatching up a proper debt management plan and getting out of your credit card debt, so give that a try.
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