Tackling Your Credit Card Debt
Suze Orman
Bestselling Author | Host of the Women & Money Podcast | Co-Founder of SecureSave
You know where I stand on having credit card debt. It holds you back from being all you can, and deserve, to be.
I realize some of you have credit card debt due to emergencies, like a medical bill or car repair bill you didn’t have the cash to cover. I respect that not all of you have credit card debt due to overspending. But, many of you do have unpaid credit card bills because you are living above your means, using credit cards to pay for the “wants” you can’t afford.
That’s never a good idea, but right now it is an even worse deal. Have you checked the interest rate you pay on your credit card bills lately? It is rising. The average rate is now more than 17%, up from 15% a few years ago. And 17% is just the average. Many of you are likely paying more than 20% interest. That is insane.
For anyone with credit card debt, this is the time to tackle it. No more delays. No more excuses.
Some tips:
- Use a credit card only for needs, not wants. Make that your mantra and you will spend less.
- Cut your spending. Every budget has some room for cutting so you have more dollars to put towards paying off your credit card bill.
- Pay more than the minimum due on your credit card statement. The minimum due is a trap that will keep you in debt—paying insane interest– for years.
- If you have a strong FICO credit score of at least 720, you may be able to qualify for a great balance-transfer deal, where you will owe no interest for more than a year. Don’t make any new charges on that card, and work like a demon to reduce the balance during the period when you are getting a break on the interest rate. Do a quick web search for “best balance transfer credit cards” to find offers.
- Get help. If you are overwhelmed with credit card debt and can’t begin to dig out on your own, you may be a good candidate for a debt management plan. Contact the National Foundation for Credit Counseling for help connecting with a legitimate non-profit credit counseling service that will help you figure out the best way to tackle your credit card debt.
Retail Merchandising/Shipping & Receiving and Freelance Tennis Coach 30+ No Injury
4 年Dear Suze Orman: Everyone has to manage money well. Todd Sonne
Chief Executive Officer | Driving Positive Progress & Operational Excellence | Expert in Turnaround & Restructuring Strategies| “Opinions expressed are solely my own & do not express views or opinions of my employer”
4 年Credit cards are an intelligent banking tool created by bankers to suffocate the middle lower class and make them sink in debits forever by overspending on extras that they can easily live without! Eventually it’s a banking system slavery tool!