The United States has long had its challenge with credit card debt. Consumers carry an average of $6,194 in credit card debt, according to Experian. Additionally, around 61% of Americans have a credit card of some kind.
Credit cards can offer great deals and benefits, but when they’re used incorrectly, the debts can add up fast. These cards tend to have high interest rates and fees, especially if a payment is missed.
So, how can you pay down what you owe and get back on track?
To pay off credit card debt, there are a few different techniques that you could use. The first is to use a balance transfer. With a balance transfer, you take your debt off one high-interest card and move it to a 0-interest card, usually. This helps you pay down what you owe without interest, though there may be a fee. Remember, you do have to pay off what you owe within the set time limit, or you’ll still get hit with interest.
Another option is to use a personal loan to pay down what you owe. Personal loans tend to have lower interest rates and can consolidate your payments, so you have more to put toward the debt each month.
Finally, consider paying off your high-interest debts first. Once you do, you’ll save more on your monthly payments and be able to pay down what you owe faster.
If you have tried these methods and been unable to pay off your debt, then bankruptcy could be a final option. It is one method of paying off debt that may eliminate it once and for all.