Credit card debt can feel overwhelming, but you’re not the only one facing a seemingly never-ending repayment process. However, you can take control of your finances through smart planning and discipline.
To better manage your debt, here are three things to consider:
1. Add Up What You Owe
Knowing how much you owe is one of the first steps you can take to better manage your debt. Add up all your credit card debt and any other debt, so you know how much money you have left each month to dedicate to repayment.
2. Interest Rates Are Still Elevated
In 2024, we experienced historic high interest rates. But while they’ve come down a little, they’re still hovering in the 20% range. At 20.15% as of June 25, interest rates haven’t come down enough to make a significant difference.
3. Your Balance Refuses to Shrink
If you’re paying each month toward credit card debt and your balance isn’t going down, talking to a credit counselor may be in order. While you need to at least pay the minimum payment each month to keep your credit in good standing, with interest rates so high, only paying more than the minimum can help you get your balance down.
Try Our Free Virtual Counselor
See how much you could save with a debt management plan, privately and easily, using our MyVirtual Counselor tool. Through a DMP, a credit counselor will work with your creditors to consolidate your credit cards into one affordable monthly payment while reducing your interest rate. But before you enroll, our virtual counselor allows you to get more information before talking to a real-life counselor. Just input your debt, assets, and income to get started.
Bottom Line
Even though paying off credit cards is more challenging these days, a solid plan and consistent effort can help you pay them down faster and more efficiently.