In the 2020 Credit Card Debt Analysis, there is a clear depiction of how there is a shift due to the COVID-19 effect and how it would have been without the pandemic. When we talk about a credit card, it sounds like a privilege for holders, which without a responsible plan, might turn out to be a very depressing situation for future financial plans.
With a credit card, the providers give the customer a credit card debt with the anticipation you will repay it at the end of the next billing cycle. In case the credit card debt is not paid, interest is charged on balance. When using the credit card debt, you can make purchases in a month where you will pay them cumulatively.
At the end of the month, you will receive a statement detailing all your monthly spending, which is required to be paid. Following are the 2020 Credit card debt analysis & how a responsible consumer can lower it.
2020 National Credit card debt analysis
With the statistics of the credit card debt, it is clear to understand the financial wellness of American households. The statistics can also be used in predicting the future over-borrowing, change of borrowing policies, including other aspects that are likely to have an impact in our pockets. The first quarter of 2020 gives us a clear indication of how things would have been had the corona virus not been amongst us.
At the start of 2020, Americans owed more than $1 trillion credit card debt due to the 2019 increase by $76.7 billion net. Consumers quickly changed this by hitting a $60 billion credit card debt pay down, the biggest in history for a single quarter. This implies that the consumers were on their way to the best years before the pandemic, which turned up to be the worst.
It is now expected that the consumers will rack up more than $140 billion National Credit card debt for the remaining of 2020, which will close the year with a net increase of $80 billion in credit card debt. Statistics also suggest that, since the great recession, performance on consumers has a regressing pattern on a year-over-year basis in 6 of every ten quarters.
Consumer Credit Card Relief
CCCR is a company that seeks to remove the burden of clients who are tired of always in credit card debts and have been unable to settle credit card debt. Consumer Credit Card Relief will help you to get back on your feet financially through various programs that will suit you. The company will provide services such as credit card debt relief, credit card debt consolidation and Credit card relief programs.
credit card debt relief
The credit card debt relief programs provides the credit card debt relief by allowing the consumer to save them money, improve your credit and lower your payments. When credit card debt relief plan is implemented by the company, the customer can improve on the credit score. You will be able to transfer all your debt to the company or part of it.
Credit card debt consolidation
Credit card debt Consolidation involves taking your multiple card balances and combining them into a single monthly payment to eliminate interest rate applied on balance. With the Consumer Credit Card Relief company offering such services, you can pay off credit card debt easily and faster. The company ensures that to settle credit card debt effectively, and there is no need to waste money on interest charges.
Credit card relief programs
This will come to play where CCCR will ensure that when you have more credit card debt than you can handle, you will continue with your normal purchasing life as the company takes care of your debts. Some of the options you stand to enjoy with these relief programs include interest rate negotiation, balance transfer, getting a debt consolidation loan, debt management program and debt settlement option.
Management of credit card debt
Plan a budget and stick to it
Many people lose track of their spending because they are not sure of what to buy at what time. Having a budget simply means that you can comfortably live within the budget. A budget that is well planned should make sure that your credit card is not stressing you due to overspending because you had planned for the expenses. Make sure you plan your spending with priorities so that if your budget did not allow, there would be no need for spending on some items. Also, make sure you put aside an emergency so that you are not found unaware of an emergency.
Build an Emergency Fund:
An emergency fund should always be there in any household. This is because it will turn out to be the best resort when a real emergency comes by. For those without an idea of how to bail themselves out when the need arises, they end up having huge credit card debts, which at times they may be unable to settle. With an emergency fund, you will not be worried by any financial urgency that comes on your way as you will always be ready. The best strategy is to be gradually saving up for the emergency fund regardless of the situation.
Work on your credit rating
This will always be good for your financial strength as when all option does not work for you, and you may end up deciding to pick a loan from a financial institution to take care of your bills. With a poor credit rating, it will be hard to acquire a loan, which would be comfortable with good ratings. When its also a point in life you want to change a new job where you would enjoy improved financial freedom, most employers are interested in your rating, which plays a significant role in deciding whether you will get the offer.
The island approach strategy
This involves prioritizing your credit card on a specific task on each one of them. This will go far in managing your credit card debts as you can enjoy avoiding debts by transferring funds to another card and level it to zero, making it easier to avoid being charged extra. Also, you can use rewards cards, probably one with travel rewards and the other with cash backs or a store credit card, which will enable you to pay at the end of the moth, cutting you the interests that you would have paid.
Repay Your Most Expensive Debt First
Most people suffering from credit card debts is because they do not recognize the essential debts to pay first. A credit card holder should always evaluate the free debts and prioritize with the most expensive ones. Once you adopt this culture, it will be easy to manage your credit card debts as you will always be left with cheaper debts, which are very easy to contain. Doing this repeatedly, you will be able to emerge debt-free at the end of it.
Evaluate the situation of your job
If you still want to maintain your credit card spending, it is good to evaluate your job and decide whether it will cater for your bills as you spend. You might do some research on possible openings that pay higher than your current salary or engage in an activity that is generating extra money for usage. You may also opt for an investment in which you would use the returns on your spending. With an extra source of income, managing credit card debts becomes easier.
Take the next step to credit card debt freedom
It is evident that the COVID-19 have hit hard the economy, and now the best thing is to be keen on your spending habit to manage your credit can repay debts. With a strategy and a reasonable budget that is within means, it will go hand in hand in evading lousy credit card debts.