Are you looking for tips to manage your credit card debt? If so, you're not alone. Credit card debt is one of the most concerning financial issues faced by people from all walks of life. From the poorest to the wealthiest, debt creeps up on you and can affect your daily life in multiple ways. A 2022 study by Nerd Wallet shows that the average American household credit card debt is estimated at $17,956, reinforcing the need for better debt management and understanding.
Even individuals with high net worth are not immune to struggles with credit card debt. Comparing oneself to wealthier peers can significantly contribute to accumulating credit card debt. For example, a financial advisor friend recently shared the story of an affluent couple who, feeling pressured to keep up with their wealthier friends and neighbors, regularly embarked on extravagant vacations and dined at high-end restaurants. Consequently, they found themselves burdened with an immense amount of credit card debt. Despite earning more than enough to sustain a comfortable lifestyle, they overspent, charging their expenses to their credit cards and watching their debt escalate with accumulating interest.
"Paying off bad debt is an essential step in getting an individual's 'Financial Ducks' in a row" before investing.-Jessica Perrone, Founder Her Financial IQ
Managing credit card debt can be overwhelming. However, here are three strategies Jessica Perrone, founder of Her Financial IQ, suggests women follow to reduce their credit card debt and regain control of their finances.
Pay more than the minimum: Making only the minimum payment on your credit card can prolong your debt repayment and accumulate more interest over time. By allocating more money towards your monthly credit card balances, you can accelerate the paydown process and save on interest charges.
Implement a spending diet: Consider adopting a spending diet to save more and spend less. By cutting back on unnecessary expenses, you can free up more money to put towards your credit card balances. This not only helps reduce your reliance on credit cards but also enables you to make larger payments towards your debt.
Explore debt consolidation loans: Another strategy to consider is obtaining a debt consolidation loan. This involves combining multiple credit card balances into a single loan with a lower interest rate. By consolidating your debt, you can simplify your payments and potentially save on interest charges, making it easier to pay down your credit card debt.
Jessica Perrone believes that "Paying off bad debt is an essential step in getting an individual's 'Financial Ducks' in a row" before investing". To help women tackle credit card debt head-on, Jessica Perrone hosted the "Bye, Bye Credit Card Debt" episode of the Her Money & Investing Show, featuring special guest Ikuma Ojok, Senior Financial Counselor at Pittsburgh Financial Empowerment Center (FEC).
In this episode, Ojok shares valuable insights into minimizing, prioritizing, and negotiating debt. She also explores options like bankruptcy and creating a comprehensive plan to stay debt-free. Don't miss this chance to learn how to eliminate credit card debt and gain financial freedom.
If you want to supercharge your financial knowledge and strengthen your saving and spending skills, don't forget to check out our fantastic HerFinIQ courses. They're designed to help you take control of your finances, make smarter money decisions and start investing.
Together, Learning to Build Wealth
Jessica Perrone, Founder, Her Financial IQ Show Host, Her Money & Investing Show
About Her Financial IQ
Her Financial IQ 's mission is to empower women through personal finance and investing education. Through its friendly and approachable curricula, Her Financial IQ is committed to helping women achieve security and wealth through financial literacy. The program teaches crucial financial skills in a way that makes them accessible to women by using examples they can relate to. This down-to-earth approach helps women gain confidence in their financial decision-making. Check out the classes here.
Together, let's empower women to achieve financial independence and security by hosting or funding programs that provide personalized finance & investing workshops. If you are an individual, school, or organization that wants to support women or teens in their financial journey, message me today or visit: HerFinIQ.com
Sources mentioned in this article:
Nerd Wallet
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