We started this week the release of some horrible real estate news that questioned the possibility of an economic recovery. Luckily, there is some encouraging news with regard to credit card debt that will comfort those who were left shocked and depressed by the grim real estate news.
More and more people are paying off their credit cards. In fact, TransUnion, one of the three credit bureaus, says that total consumer credit card debt has dropped by 4.1% to $4,591 – the lowest level in 8 years. The last time credit card debt fell under $5,000 was during the beginning of 2002.
The good news continues: the percentage of credit card delinquencies has also dropped to 0.91% from 21.3% last year. When someone is delinquent on their credit card, it means they have not paid their bill in 90 days.
Among the states with the highest credit card debt, Alaska and Tennessee topped the list with $7,148 and $5,594, respectively.
How to Pay off Credit Card Debt:
While this new data is good news, even the smallest amount of credit card debt is bad! If you’re in credit card debt, here are 3 easy ways to tackle that debt:
1. Pay more than the minimum: If you can pay $5 or $10 more than the minimum payment, you will be out of debt faster and pay less money in interest than simply paying the minimum payment. As per the Credit CARD Act of 2009, credit card companies must state exactly how long and how much money in interest it will cost if you only pay the minimum payment.
2. Call up the credit card companies: And ask for a lower interest rate – ask to speak to a supervisor if necessary!
3. Priority: Start paying off the credit card with the highest interest rate first – this card is costing you the most money, so you want to pay it off as soon as possible.
For more information on how to pay off debt, please click here!
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