CHANNEL 11 EXCLUSIVE: Paying down credit card debt
Americans owe nearly $900 billion in credit card debt, according to the Federal Reserve of New York.
“Inflation has stretched household budgets in a way that we haven’t seen in a long, long time. And a couple of the consequences of that are more and more households are running down the savings that have been built up during the pandemic and running up the credit card debt that had been paid down during the pandemic,” said Bankrate C.F.O. Greg McBride.
Demetrius Thrasher understands how quickly credit card balances add up. As a member of the U.S. Navy living abroad, he didn’t think twice about his spending.
“I started getting swept up in that lifestyle,” he said. “I literally, by the time I left Spain, first-class flights from here to the States doing the most, partying like it’s nobody’s business, started tipping close to $90,000.”
When the military told him his debt would prevent him from advancing, he got serious about paying it off.
With the help of Money Management International, Thrasher came up with a repayment plan. He got all of his interest rates lowered and in two years, paid off all of his debt — and so can you.
Knowing your interest rate is key.
“Grab one of those low rates like 0% to balance transfer or introductory offers,” said McBride. “That’s a great way to insulate yourself from rising rates. But more importantly, give yourself this runway to get that debt paid off once and for all.”
And don’t think about missing a payment. Late fees and penalties add up quickly.
If you’re really in trouble, do what Thrasher did and ask for help.
The National Foundation for Credit Counseling will connect you with an agency like his. Go to nfcc.org.
The most important lesson Thrasher wants you to understand:
“Please learn the difference between a need and a want.”
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