At the end of 2024, US credit card debt reached $1,210,000,000,000! That’s $1.21 trillion!

What’s worse, according to Lending Tree, 47% of Americans pay all the interest on credit card debt. JDPower says 49% of Americans pay off their credit cards monthly.

Basically, that means of the nearly 200 million people in the US who own credit cards, half are burdened with paying all the interest on credit card purchases: $130 billion per month. That debt is financed at exorbitantly high interest rates.

Financial planners say the single most important financial decision a person can make is to not have credit card debt. And, if they do, the most important action anyone can take to improve their financial situation is to take the necessary steps to eliminate all credit card debt.

There is no denying it, credit card debt is one of the most debilitating financial traps anyone can face. The biggest reason is the carrying cost of former purchases at exceptionally high interest rates. Continued use of the card for current and future purchases only compounds the problem.

If the credit card balance is not paid off in full, it creates the situation where your monthly payment pays less and less of the amount owed. Monthly payments end up going to servicing the interest (first before being applied to the purchase balance). Worse, the credit card companies allow you to carry your unpaid interest as part of your balance (along with your unpaid purchases) which means you are financing past interest expenses.

If you find yourself in the group who carry a credit card balance every month, you may need help and you may need to change your spending habits.

What to Do?
The most important things you can do are;

• Create a spending budget. Put your expenses into basic categories.
  -Necessary expenses like food, auto expense, housing, utilities, etc.
  -Discretionary spending like clothing, entertainment, luxury purchases, travel, etc.
  -Revolving debt reduction like paying off your credit card or consolidating these debts via a lower interest rate loan.
• Modify your spending based on your monthly income by putting a budget plan in place and resolve to not take on additional debt during this period of financial change.
• Set a realistic plan with a specific end date for eliminating your revolving debt and be determined to stay within your budget.
• Change your behavior by foregoing certain purchases you would normally make during this debt reduction period.
• Have the right mindset. Getting into financial trouble probably didn’t happen overnight and getting out of it won’t either.

Our Advice
Personal finances are an integral part of everyone’s quality of life. If you are eligible,we have financing options to help you consolidate your revolving debt.

Whatever your financial need, we're here to help.