How to Pay Off Credit Card Debt
Audio version available here:
Length: approx. 1 min. 30 sec.
With consumer debt in the United States weighing heavily on Americans at $17.5 trillion, many are in desperate need for solutions to their debt crisis. Credit card debt is among some of the most concerning, finishing off 2023 at $1.13 trillion. With “6.4% of credit card debt [being] delinquent by 90 days or more”, financial stress has become a significant problem for Americans, “‘especially among younger and lower-income households.’” So, how can they find debt relief?
Refinancing is the first step. You may want to ask your credit card company to grant you a lower interest rate. With many credit cards boasting a rate far higher than the Fed’s already elevated interest rate, this could slow down the accumulation of extra debt. If your current credit card company denies your request, consider a 0% balance transfer credit card. This will allow you to work on paying off your current balance without the stress of more interest piling on top. Practice caution if you do so, however, as the 0% rate is not permanent.
Other methods to reduce your debt include paying off balances that have the highest interest rates first so as to not accumulate more debt, consolidating your loans to a lower fixed rate, and budgeting ahead for inflation.
We understand that debt is not an easy situation. It’s stressful and can get in the way of your future plans, especially for those trying to get their business off the ground and profitable. To make the most out of debt solutions for your business, you first need to know your numbers. For the right guidance, reach out to the XQ CPA team to get you on the right path. Call us, or schedule an appointment online.
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