The national credit card debt in America is $1.072 trillion. This is the highest that the credit card debt has been in several years. In 2014, the national credit card debt was $888 billion.
Twenty percent of Americans regularly use credit cards for purchases. Credit card spending is destructive for many people. Robert McKinley is a senior analyst who works for Cardtrak.com. He stated that people who are trying to manage their credit card debt should act quickly because the economy can potentially crash.
Many credit card users are charging more to their card than what they can afford. Robert noted that the small economy may be slowing down. However, Robert has noted that credit card spending does not have to be a bad thing if you know how to keep it under control.
He stated that if need to make a purchase that is under $50, then it is best for you to use a debit card. You should use a credit card if you need to make a larger purchase. Robert also compared the difference between using a credit card and a debit card.
A debit card is money that you already have. A credit card is money that you hope you will have in the future. Robert also stated that credit cards are one of the most expensive type of borrowing. If you need a credit card, then you will need to look for one that has an interest rate under 15 percent.
You will also need to avoid missing payments. Late payment fees can be quite expensive. Furthermore, there are many things that you can do in order to pay off credit card debt.
- Pay off the credit card with the highest interest rate.
- Only use your credit card for emergencies.
- Do not pay your credit card bills late.
- Avoid getting a cash advance with a credit card.
- Ask for help if you are struggling.
Read More: https://www.businessinsider.com/cutting-up-my-credit-cards-didnt-help-me-pay-off-debt
Dil Bole Oberoi
