TULSA, Okla — Research shows paying off credit cards each month is getting harder.
"Six in ten people with credit card debt have had it for at least a year," said Bankrate Analyst Ted Rossman.
He added, "Credit cards delinquencies are at their highest point since 2011."
Jennifer Ramseyer didn't like seeing the way the 24% interest on her credit card balance made her debt grow.
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"It just rolled over every month," she said. "And you're always paying that 24%."
It prompted her to make paying off her card a priority.
"I paid it off after about a year," she said. "I've never had another credit card since."
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Most people cannot get by without at least one credit card.
- Half of credit cardholders carry debt from month to month
- Up 6% since January
- That's the highest percent since March 2020
The minimum payment math is pretty staggering.
The average credit card balance is about $6,300 according to TransUnion, and the average credit card charge is 20.7 3.
So if you make minimum payments in that average debt average rate scenario, you're going to be in debt for 18 years, and you're gonna end up paying about $9,500 just in interest that really holds you back.
A much better approach would be to sign up for a 0% balance transfer credit card. So you move your existing high cost debt over to a new card that won't charge interest for up to 21 months.
You could pay $300 a month for 21 months and completely knock out that average debt without interest.
I mean, that's tremendous when you contrast that with the nearly 2 decades in the minimum payment scenario.
Ted Rossman, Bankrate Analyst
Contact the Problem Solvers:
- 918-748-1502
- problemsolvers@kjrh.com
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