Crazy Money! Credit Card Rates and Balances
It’s Crazy Money Day!
The Federal Reserve Bank of New York reports that credit card balances increased $61 billion during the 4th quarter of 2022. That set a debt record of $927 billion. Credit card interest rates jumped and some borrowers now pay more than 20%. That is crazy! If you carry a credit card balance, here are some tips I want you to take. First, stop adding to the debt. Go on a “needs only” spending plan to pay down the cards. I’m talking true needs. If you don’t need it today, don’t buy it. The longer you do this, the faster you can reduce your debt. Try adopting this frugal step. Next, see if the company will negotiate a lower rate with you, or check out 0% interest on balance transfers. Read the fine print and discipline yourself to pay it off on time or you’ll face costly penalties.
Another option is taking out a personal loan at a low rate. If you’re a member of a credit union, talk to a banker about your eligibility. Avoid any payday loans. How about taking on a part-time job or logging in overtime hours? Whatever you do, don’t procrastinate. Dedicate yourself to paying off the credit card balance each month and you’ll save yourself a ton of money. Then, refuse to get in that predicament again. Proverbs 22:7 says, “The rich rules over the poor, and the borrower is the slave of the lender.” Spending less than you earn is a lifestyle that will bless you in multiple ways. I want you to try it!
I also hope you can join us at Crown’s 2023 Reunion. We plan to gather October 12-15 at Ridgecrest Conference Center near beautiful Asheville, North Carolina. For more details and registration, go to crown.org/reunion2023