Can't afford more than the minimum credit card payment? Here are your options.
Summary
Many credit card users struggle to pay more than the minimum amount due because credit card interest rates are very high, averaging about 22%. While paying only the minimum keeps accounts current, it causes interest to build up and extends the time needed to pay off debt. There are options like hardship programs, balance transfer cards, debt consolidation loans, and credit counseling that can help manage credit card debt more effectively.Key Facts
- Credit card interest rates average nearly 22%, making debt expensive to carry.
- Paying only the minimum amount keeps accounts current but causes interest to increase and repayment to take much longer.
- High inflation and rising costs make it harder for many people to pay more than the minimum.
- Calling your credit card issuer can lead to hardship programs that lower interest rates or payments temporarily.
- Balance transfer credit cards can offer 0% interest for a limited time but usually require good credit and have fees.
- Debt consolidation loans can lower interest rates and combine multiple payments into one monthly bill.
- Nonprofit credit counseling agencies can create a debt management plan tailored to your budget.
- Many people do not realize help options exist unless they ask their lenders or seek advice.
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