Living in debt is a sign that you may have problems in managing your finances effectively. Being in debt due to the fact that you overused your credit card on unessential things is another story.
CNBC recently reported that The Federal Reserve announced outstanding credit card debt of Americans hit a new high in November last year. According to The Federal Reserve, credit card debts increased from $11.2 billion to $1.023 trillion. Analysts say that this should serve as a wake-up call to millions of Americans who use their credit cards in an unwise manner.
The report also revealed that the average American household with revolving credit card debt pays at least $904 in interest each year. If you think hard about it, the amount of interest you are paying credit card companies is enough to pay off some basic utilities.
A credit counseling service such as [Credit Advisors Council](https://www.creditadvisorscouncil.com/ may be of good use to you and your family as you endeavor to get out of your credit card debt. It is wise to seek advice from those who have experience in terms of handling and managing money effectively. There are many ways these experts can help, such as debt consolidation. Oftentimes, you may think that you are in control of the situation. Unfortunately, it may have come to a point where you are no longer in a position to dictate the pace of things.
Instead, you find yourself trapped in an unseemly quagmire that you think you cannot get out from. Truth is, you can get out of credit card debt. It is just a matter of time if you are really bent on making it work. Truthfully, getting out of debt should be every American family’s topmost objective. Being free from debt will give you more freedom to be able to enjoy the fruits of your labor.
According to the same CNBC report, one of the tools that can help you save when paying off a credit card debt that too many Americans overlook is the balance transfer card. A lot of people, especially millennials, do not really understand how a balance transfer card works.
A balance transfer card gives you the opportunity to transfer your credit card balance to one that will not charge you with any interest rate during the duration of the introductory period. Usually, this period lasts from six to 21 months depending on the kind of card you acquired. Ideally, this lets you save on interest rates while you continue to pay the principal amount.
If you make the right pencil pushing, you will readily see the benefits that can be gotten from balance transfer cards. Your savings can go as high as thousands if you take this option. When paying off credit card debt, the priority is always to choose the option that will give you the lowest interest rates out there. It is always a better option if you find an opportunity that allows you to pay off your debt without having to pay high-interest rates.
Always remember to use your credit card wisely.