Crazy Money! The Cost of Credit Card Debt

It’s Crazy Money Day!

It’s taking longer to pay off credit card debt. Any gains made with stimulus money have been wiped out by inflation. The Federal Reserve Bank of New York says credit card debt is rising at its fastest pace in more than 20 years. Americans now owe approximately $887 billion on their credit cards. That’s equivalent to 887,000 1 million dollar houses! The danger of carrying credit card debt is the cost of interest. A $6,000 balance at today’s rates can take more than 16 years to pay off at a cost of more than $12,000! That’s why I recommend eliminating credit card debt! Our website explains the debt snowball and debt avalanche methods to payoff balances.

Jesus said, “Whoever can be trusted with little can also be trusted with much.” (Luke 16:10) First, cut out all unnecessary spending and use cash for variable expenses. Eliminate penalties and extra charges by paying bills on time, using ATMs in your bank’s network, and monitoring bank account balances. Can you move? Sell your car? Do you really need that club membership or expensive vacation? Step back and examine your lifestyle choices. Ask a wise mentor to help you see clearly. Finally, call your credit card issuers. If you’ve owned a credit card for a long time and have excellent credit, you may be able to negotiate a lower rate. Stop the crazy credit cycle and pay off your balance every month.

 And if you’re struggling to do it, I recommend Christian Credit Counselors. They’ll create a debt management plan just for you. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.