What to Do About Rising Credit Card Debt

Friday, August 3, 2012, 2:00 AM | 19 Comments

According to the Federal Reserve, consumer borrowing rose by $17.1 billion in May for a total of $2.57 trillion. Borrowing increased mainly due to record levels of student and auto loans, which reached $1.7 trillion. The folks who keep Debt Records say this is the highest levels since 2007.

With more consumers turning to credit cards for purchases, revolving debt rose by $8 billion, increasing the total credit card debt to $870 billion, says Federal Reserve.

That means consumers must watch their balances and their budgets to avoid hefty debt and interest charges.

Reasons for high spending using credit cards…

There can be many reasons but experts blame two for the most part:

  1. Some experts blame slowdown in job growth. Creating jobs never picked up as the government had hoped. Goes against my logic.

  2. Others say the decline in consumers confidence is the reason people are spending more using their cards. Beats me why lack of confidence in the economy would be a reason to spend more.

I keep saying this: credit card companies are swelling their already fat bellies with consumers spending using their credit cards and accruing debt that they won’t be able to pay.

Here is what to do…

There are a few things you can do to pay off your debt faster:

  • Pay more than monthly minimum

    Some folks are so hooked on the minimum, it’s almost routine to pay only the minimum every month.

    They would pay the minimum alright but would go out on the town and spend money recklessly and needlessly. Shame on you guys who do this and then cry aloud about lack of money and unable to pay debt.

  • Set priorities

    Straighten out your priorities. Set goals about how much to save and spend. If you don’t have the money to pay for your vacation to a far far land, just don’t go. Find some place in your local community for daytime trips.

  • Avoid accumulating more debt

    It’s not the right time to apply for more credit cards. I have two and that’s more than enough for me and my family – American Express for gas and travel, and MasterCard for groceries and other purchases.

    You would have extremely hard time to get out of debt while you are accumulating more debt. The cycle will never end.

  • Pay off high interest rate debt first

    Many experts suggest to pay down the highest interest rate balances first. No matter how high your income is, the high interest rate chews up your potential saving.

In a Nutshell
These are but some of the ways you can start paying off your credit card debt.

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  1. 19 Responses to “What to Do About Rising Credit Card Debt”

  2. By Saraya on Aug 12, 2012, 3:20 pm | Reply

    Your credit ropert and score doesn’t care if you have prime or subprime cards. But, if you have a subprime card on your roperts (like Aspire) and try applying for a prime, the prime company may notice. (That doesn’t necessarily mean getting denied with a prime company though. But it might(?) mean a lower limit or higher scores)As for applying through that site you’ve listed, I wouldn’t recommend it. Always go to the home site of the credit card you are applying for. Don’t trust putting your sensitive info on any application through a site like the one you listed. I’m not saying that particular site is bad, I don’t know, but I do know that people have had their ID’s stolen by going through similar sites when applying. As for the Amex Blue, it is hard to get unless you have pretty good credit. Most Amex cards are hard to get without a good credit history, but Blue is one of the harder ones.Since you didn’t list your scores or your baddies on your roperts you might go to the link I’ve provided. Click on forums then look at the upper right corner for CreditPulls. You can put your score (or a few points higher score) and click on the search button. When the results come up, click on score and it will sort it from the highest to lowest scores. It will list many different things what card it is, if the person was approved or not. How much the credit line is. Many times it will say what baddies were on the peoples roperts at the time of applying. And much more.After looking through that, you might look through the credit forum. Do searches on the card you are thinking about and then read of others experiences when applying etc.You might also learn how to deal with any baddies on your roperts if you have any.

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  4. By Rubel on Aug 17, 2012, 3:50 pm | Reply

    I’ve thought about the retirement option as well.
    But am leery to do so. And actually most of my retirement is in a Rollover IRA. There’s just a little bit in my 403b.
    It’s in the back of my brain.credit card company

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