Credit Cards
Struggling with credit card debt? You’re not alone, and it’s never too late to turn things around. With practical strategies and a clear plan, you can regain control, reduce your debt, and build a brighter financial future. Let me help you navigate the path to freedom—together, we’ll make it happen.
The average interest rate on new credit card offers reached 24.84% in 2024, the highest since tracking began.
Did you know?
Record Breaking Debt
As of the third quarter of 2024, Americans owe a record $1.17 trillion on credit cards, marking the highest level on record in Federal Reserve data dating back to 2003.
Struggling to keep up!
The 30-day delinquency flow rate for credit card debt was 8.8% in the third quarter of 2024, with serious delinquencies at 7.1%.
Cards per Generation
As of 2023, the average American holds approximately 3.9 credit cards. This number varies by generation:
- Generation Z (ages 18-26): Average of 2 credit cards.
- Millennials (ages 27-42): Average of 3.5 credit cards.
- Generation X (ages 43-58): Average of 4.3 credit cards.
- Baby Boomers (ages 59-77): Average of 4.3 credit cards.
- Silent Generation (ages 78 and older): Average of 3.5 credit cards.
Tools
Use the Debt Snowball or Debt Avalanche Method
- How it Helps: These structured strategies help you pay off debt systematically, keeping you motivated.
- Action Step:
- Debt Snowball: Pay off the smallest balance first while making minimum payments on others, then roll that payment into the next smallest debt.
- Debt Avalanche: Focus on the card with the highest interest rate first to save more money over time.
- Pro Tip: Choose the method that aligns with your personality—Snowball for motivation, Avalanche for math-based savings.
Negotiate a Lower Interest Rate
- How it Helps: Reducing your APR can make it easier to pay down your balance faster without interest eating into your payments.
- Action Step: Call your credit card company and politely ask for a lower interest rate, citing your good payment history or offers from competitors.
- Pro Tip: If they say no, ask about transferring to a different card within their system with a lower rate or promotional offer.
Automate Payments Above the Minimum
- How it Helps: Automating payments ensures consistency and prevents missed payments, while paying more than the minimum helps you reduce the principal faster.
- Action Step: Set up automatic payments through your credit card issuer or bank. Choose an amount that’s slightly higher than the minimum due, or even better, aim for a fixed percentage of your balance (e.g., 5-10%).
- Pro Tip: Schedule payments right after your payday to avoid spending the money elsewhere. If possible, make additional payments mid-cycle to reduce interest accrual.