As the weather gets warmer, don’t let your credit score go up in flames! The average person with credit card debt has a balance of $16,000. That’s the cost of a brand new Ford Focus!
We understand the road out of debt isn’t easy but we want to provide you with some helpful tips.
Get organized. Kyle Long, Senior Commercial Credit Analyst at Two Rivers Bank & Trust, said organization is essential! “Create a detailed list of your current credit cards, total debt on each card, minimum payment on each, and their interest rates,” he suggested.
Hide your cards. After you’re organized, hide your cards. Try not to use them if you don’t have to. “Determine if there are any areas where you can save money during the month,” Long said.
“If you can eat out less, eliminate unnecessary luxury expenses, and utilize coupons, that money can be saved to make additional payments to the total credit card debt.”
Start with one card at a time. The card with the highest interest rate is where you should start. “Apply any extra cash you have every month to paying off this card, while still paying the minimum on the other cards,” Long explained. “Continue this approach until all your cards have been paid off.”
Long’s best advice for someone with substantial credit card debt? “Don’t ignore it! Make a plan and execute it because prolonging the debt will lead to increased interest charges, late fees, and a decrease in your credit score,” he said.
Our advice? Take a deep breath. Two Rivers can help you along the way. Our checking accounts include a debit card and online banking services that can help you use your credit card less.
You can come see us, too. Our lenders can review your finances with you.
“We can determine if a personal loan or home equity loan can help you consolidate your credit card debt, which can save you thousands of dollars in interest payments,” Long explained.