Americans collectively owe $1.13 trillion in credit card debt, with the average balance per consumer at a historic high of $6,360. Experts recommend strategies such as utilizing 0% balance transfer credit cards to consolidate high-cost debt, refinancing into lower-interest personal loans, or negotiating for lower annual percentage rates. Additionally, they suggest prioritizing repayment using either the avalanche or snowball method, both of which can help consumers pay off debt sooner.
Federal student loan borrowers are advised to take control of their student loans and make payments while hoping for forgiveness, as most borrowers do not receive forgiveness. The first step is to find your loan servicer, which can be done by logging into the Federal Student Aid website. Once you know who is servicing your loans, organize them in a spreadsheet and understand the details of each loan. Choose a repayment strategy based on your financial goals, such as the debt avalanche or debt snowball methods. Consider income-driven repayment plans if the standard plan is unaffordable.
As the holiday shopping season approaches, it's important to address credit card debt, which has reached a record high of $1.03 trillion in the US. To reduce credit card debt, consumers should start by understanding what they owe and reviewing their credit reports and scores for errors. Consolidating debt through a 0% interest balance transfer card or a personal loan can be effective strategies. Working with card issuers to negotiate lower interest rates or exploring debt settlement options may also be helpful. Finally, choosing a repayment strategy and sticking to it, while being mindful of spending habits, can lead to long-term debt reduction.
