06 Feb The Best Solution for the United States Credit Card Debt Crisis
The concept of debt in America is not a new one at all. While the country itself is in the hole, the average American consumer is a few thousand dollars in personal debt as well. This statistic is comprised of multiple kinds of debt, including student loans, auto and mortgage debt. However, credit card debt in America has been increasing as well and is definitely something that should be kept close watch on. At the end of the year 2018, Americans had racked up $900 billion dollars in credit card debt, and it finally crossed the 1 trillion mark in 2019. While at first glance these numbers can be extremely worrisome, there are ample ways and technologies that you can utilize in this current year, to ensure that you are being smart with credit card usage, and consolidate credit card debt already accumulated.
The surge in credit card usage can be chalked up to many different things, because our economy is so fragile. Factors ranging from production costs of certain items, all the way to personal sentiments about the economy can greatly affect how Americans spend their money. However, a big reason for the increase can be accounted to the bankruptcy protection act that was passed a couple of years prior. This act made it significantly more difficult for people to file for bankruptcy, which in turn, made people utilize credit cards as a way to pay off their bills, and make ends meet.
Another reason for the increase of need for credit card debt relief, is the sentiments of Americans. Generally speaking, when things in our economy are going good, people tend to spend more. While things may not be the best financially, it has been pretty stable, which is why more people have been using credit cards more often. Though this increase of use isn’t a direct problem, it is important that we normalize healthy spending habits, to ensure the need to be credit card debt free does not increase with usage.
Healthy Credit Card Habits
One way to help with credit card debt is to be proactive and smart when it comes to using credit cards in the first place. There are many techniques that one can use to ensure that they are doing so in the best way to both manage their expenses, and their credit score. For one, keeping credit card usage down is a good idea, as this is a factor when it comes to determining ones credit score. Only using the card in cases of extreme emergency is a quick way to keep the usage down as low as possible.
Paying more than the necessary minimum amount on the card each month can help eradicate the future need for credit card debt relief as well. If you simply pay the minimum amount off that’s more interest you’ll be paying in the long run. Making sure you pay at least the minimum is important however, because missed payments are bad for both your credit score, and your debt overall. If possible, you should attempt to pay the balance in full when the payment is due, because this will keep interest at a low, and help your credit score increase a lot. A huge portion of the need for credit card debt relief comes from high interest rates, and extra amounts needed to pay from late payments.
Creating an emergency savings accounts can be a great idea as well. Having back up funds can eliminate the need for a credit card in totality, because when you are in trouble you can use your account instead of grabbing the card. Generally speaking, having three months of your typical expenses saved up in an account is a good rule of thumb to live by. Having rules for the usage of your credit card can help too. Simply not allowing yourself to purchase something on the card, unless you know you have enough money to in your checking account is a very quick fix for stopping debt before it even arises.
Solutions for those already in debt
For people who have accumulated credit card debt on multiple cards, credit card debt consolidation may be a great idea. To consolidate credit card debt, you can apply for a loan for this specific reason, and use it to pay your credit cards off. Them, you will only have one loan payment to make on a regular, and this is better because there is only one amount accruing interest, rather than the multiple credit cards. Credit card debt consolidation services are offered at a multitude of places but the best one to go with high reputation is Consumer Credit Card Relief which offers many solutions to credit card debt.
In totality, while many problems can arise for those who are in debt, it doesn’t have to be the end of the world. There are ample resources in today’s world that can help anyone overcome the debt situation they currently find themselves in or apart of. These can range from filing for bankruptcy, or consolidating credit card debt from outside parties like Consumer Credit Card Relief. And keeping a few tips in mind when it comes to using your credit card in general can help prevent the problem altogether. Credit card debt relief is something that a lot of people desire. and any issues with debt should not be something to feel ashamed of, as many others are in similar positions.