Credit card debt doesn’t have to control your life. But you’re not alone if managing your credit card debt is challenging, especially if you have a high-interest balance. Paying back debt takes persistence and strategy. With that in mind, here are three considerations to remember as you plan to pay back your lenders.
1. Understand the Full Scope of Your Debt
The first step to getting a handle on your debt is knowing how much you owe. Make sure you know how many credit cards you have and your total debt, so you can make a solid plan to pay it back.
2. Interest Rates Are Still Steep
Despite some rate drops, interest rates continue to be elevated. While they’ve come down slightly from last year’s historic highs, they continue to hover in the 20% range — 20.15% as of June 25. Dealing with compounding interest day to day can make repayment that much more challenging.
3. Your Balance Keeps Climbing
The best way to pay back debt is to ensure you’re paying more than the minimum balance. But at the very least, you should always pay the minimum. Talking to a credit counselor can help if your debt is still growing.
Try Our Free Virtual Counselor
Explore your potential savings privately with MyVirtual Counselor, an interactive tool that discusses the benefits of a debt management program (DMP). Through a DMP, a counselor will work with your lenders to consolidate your credit cards into one affordable monthly payment while reducing your interest rate. To get started, make sure you have your debt, assets, and income in front of you, and then let our virtual counselor get you started.
Bottom Line
With today's steep prices and high interest rates, paying off credit cards can be harder than ever. But through careful planning and diligence, you can start making real progress and pay down your debt more efficiently.