Many people set a goal to lose weight in the New Year. If you don’t want to lose weight, then you should consider getting rid of your debt. It is estimated that 55 percent of Americans have credit card debt. The total credit card debt is $56 billion.
Mike PeQueen is a financial expert who works at Hightower Financial Houston. He stated that Americans have always struggled with credit card debt. However, credit card debt is more of a problem than it was in the past.
Mike stated that the buy now, pay later attitude is what causes a lot of people to accumulate debt. It is even more tempting for people to use their credit card during the holiday season. Most people have between $4,000 and $6,000 in credit card debt. The average interest rate is 17 percent.
Here is an example of how much extra money you will have to pay if you have a credit card with a 17 percent interest rate. If your credit card has a $6,000 balance, then you will be paying $800 to $1,000 extra in interest each year. The interest rate is what is making it difficult for people to get out of debt.
Mike also stated that many people are also tempted by sales. However, it does not help you to buy something that has a 15 percent discount if you will be charging it to a card that has a 17 percent interest rate. Additionally, Mike has warned people about signing up for a credit card that has a rewards program.
Credit card rewards programs are profitable because they get you to make extra purchases. Mike has tips for people who are struggling with credit card debt. He stated that people should create a budget and use cash or a debit card for purchases.
Read More: https://www.nbcnews.com/better/lifestyle/how-get-out-debt-save-more-money-2020-ncna1109456
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