FOR IMMEDIATE RELEASE
AFCU Provides Tips on How to Avoid Being Haunted By Credit Card Debt
Riverdale, UT – Oct 17, 2019 – Ghosts and ghouls may not be the only thing haunting this Halloween. Poor financial decisions, including credit card debt, may also be rising from the grave. Utahns/Nevadans have an average credit card balance of $5,961/$6,401 and during the upcoming holiday season will rack up an average of $1,054 in additional debt.
“It’s easy to become buried by credit card debt and the thought of clawing your way out can be paralyzing for many,” said America First Credit Union vice president of credit, Susan Chadwick. “One of the best things you can do to take the first step in getting rid of debt is to have a mindset change. Focus on the positive reasons you want to get out of debt whether it’s to be less stressed, improve your credit score so you’re able to buy a new home or car, or achieving financial freedom.”
While there is no one best practice for banishing credit card debt, these pay-down tips and strategies can help cast away debt:
- Pay off the balance with the highest APR first – Look at each balance and interest rates for each card, and whichever has the highest annual percentage rate (APR) is the one that should be focused on first while still making minimum payments on other cards. Once that card is entirely paid off, move on to the one that has the next highest APR.
- Pay off the card with the lowest balance first – Another strategy that people can take is increasing payments on the credit card with the lowest balance while continuing to make the minimum payment on other cards. It’s quicker and easier to pay a $500 balance down to zero than a $2,500 balance. And it feels good to pay a credit card bill in full, no matter what the balance was to begin with.
- Consolidate your debt to a single card or loan – By consolidating credit card debt to a single card or a debt consolidation loan, there will only be a single payment each month rather than four or five. While all the debt has been transferred to one place, it doesn’t mean it went away. Be sure to still focus on paying this debt off, so it’s a good idea to pay more than the minimum due each month.
- Consult with a financial advisor – A financial advisor can help examine incoming and outgoing expenses. They can help determine a personalized plan that can help determine which strategy will be most effective as well as establish a workable, realistic budget and savings plan.
To learn more financial tips, watch AFCU’s video series, FUNDamentals, at americafirst.com/learn. Topics include good versus bad spending, loan basics and demystifying mortgages.
ABOUT AMERICA FIRST CREDIT UNION
Proudly celebrating 80 years of servicing members and a long-standing history, America First has become one of the largest, most stable and most progressive credit unions in the country, and has remained a member-owned, not-for-profit cooperative financial institution. Today, America First has 128 locations, and is the 9th largest credit union in assets in the United States with over $11.5 billion, and the sixth largest credit union in membership in America with more than 1,062,000 members.