Do you have credit card debt?
Do you have Credit Card Debt? You’re not alone. More than half of American consumers have credit card debt. In the third quarter of 2021, Americans racked up $17 billion in credit card debt. Some attribute the large increase in credit card debt to the winding down of economic stimulus payments and enhanced unemployment benefits. Heavy reliance on credit cards and the resulting credit card debt can be a monthly burden on you and your family. Looking for the best way to pay off credit card debt? Check out these tips:
Make More Than the Minimum Payment
You’ve probably heard this piece of advice before, but it can make the biggest impact on paying off your credit card debt. When you only make the minimum payments, your balance will continue to grow due to interest. If you have some extra money at the end of the month, putting it toward your credit card bill can make a big difference. If you don’t ever have any extra money, you may need to consider making a budget and prioritize paying off your credit card debt.
Pay Off the Card with the Highest Interest Rate
If you have debt on more than one credit card, look at the interest rates of each card. Whatever account has the highest interest rate should become your “pay off first” card. Similar to making more than the minimum payment, paying off this card first will help stop your balance growing rapidly due to interest.
Take Out a Personal Loan for Debt Consolidation
One way to get rid of credit card debt faster is to take out a personal loan for debt consolidation. When you take out a personal loan for the purpose of consolidating your debt, you can use the money from the loan to pay off (or pay down) your outstanding credit card balances, and you are left with a single loan. A debt consolidation loan is a great option when the interest rate on the loan is lower than the interest rate on your credit cards. Learn more about ways to consolidate your debt and compare debt consolidation vs. debt forgiveness.
Take Advantage of Balance Transfers
Getting a new credit card may seem counter-intuitive but it may be one of the best ways to pay off credit card debt. When you get a new card that has a 0% APR* Balance Transfer offer, like the PCU Platinum Rewards Mastercard, you can transfer an existing credit card balance and pay no interest for the duration of the offer. This means any payments you make go towards paying off the principal amount. This can go a long way towards paying off your debt faster! If you're looking for a rewards credit card in Nanuet, New City, or Orangeburg, the Palisades CU Rewards Mastercard, might be a great option for you! Learn more about the benefits of shopping with a credit card from Palisades CU.
If you have questions about paying off your credit card debt or want to learn more about our 0% APR* Balance Transfer Offer contact us today! Palisades servers community members in Rockland County New York and Bergen County, New Jersey. View current credit card rates in Nanuet, Orangeburg, and New City.
Updated December 2021
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