Experts offer tips on paying debt on Credit Card Reduction Day
(CBS 58) – Thursday marks Credit Card Reduction Day.
According to NerdWallet, the average U.S. household has around $7,000 in credit card debt.
Experts say although mounting debt can seem daunting, there are several simple steps people can take to begin paying off credit debt.
Financial advisors say to start small, set a goal of making the minimum payments on your credit card every month. Another strategy is the snowball method where people start by paying off the lowest balance credit card. While doing that, people should still be making the minimum payment on other cards.
“Once that lowest is paid off, you move onto the next lowest and you keep doing that,” Drake & Associates financial advisor Brad Allen said. “That’s going to create some momentum for you over time and just get that credit debt paid off faster.”
Allen said one of the biggest problems people run into is missing payments and the impact that has on credit score.
More information can be found on the Drake & Associates website.