Credit card debt can be overwhelming. Whether your debt has accrued from purchasing major appliances for your new home, or just because of your love for a good department store sale, any kind of credit card debt can seem scary when it gets out of hand. The good news is you're not alone. Forty-five percent of Americans carry a credit card balance every month, and on average, credit card debt accumulates to over $16,000 per person. If any of these statistics sound like you, our friends at Coinage are here with five easy ways to eliminate that debt. When carrying a large balance on your card, paying the minimum each month just won't cut it. If you are strapped for cash and unable to follow a few of these goals for paying them off, simply paying the minimum twice each month can help you get back on track. This can result in you paying those balances down much faster and slow the interest from growing. Being cost-efficient is good, and saving money everywhere that you can is even better, but the true path to financial freedom is stellar credit.
Coinage, life well spent. Presented by Geico. Are you one of the 45% of Americans who carry a credit card balance every month? Dont beat yourself up, you are not alone. The average credit card debt is just over 16 thousand dollars. With that balance, if you do nothing but fork over the minimum payment each moth, you'll owe an extra 11 thousand dollars on top of that debt. Here are five strategies to eliminate it. Target one card at a time. Depending on what your goal is, figure out which card to target from there. Next, ask your creditors for a lower interest rate. If you have good credit, and you're a long-term customer, you can get a reduced interest rate. That can amount to hundreds of dollars saved per year. If you're careful about it, transfer your balance to a card with a lower interest rate. There are a few caveats though. Make sure you can pay off the debt within the low interest rate period. Make sure you can pay on time. And take into account the balance transfer fee. Try a peer-to-peer lender if you can't pay off your credit card in full. Peer-to-peer lenders can offer you a loan with fixed interest rates that are 20% to 30% lower than most credit cards. If you choose strap to fall all these other tips, pay the minimum balance twice a month. The sooner yo make your payment, the faster your average dairy balance is reduced which leads to fewer dollars in interest you'll pay. This strategy can mean that if you owe $2000 on a credit card, you pay off the the card three years rather than in 21 years. That's a lot of extra money in the bank. [MUSIC] Coinage, life well spent. Presented by Geico.