LAS VEGAS (KTNV) – Americans are piling up more and more credit card debt, with balances up 48% from three years ago.
Now we know that the Federal Reserve is considering a rate cut in September, but experts say more is needed to truly get credit card debt under control.
And here’s another eye-opening number: Americans have over $1.1 trillion in credit card debt, a new record high.
Local financial advisor Lisa Chastain told me that almost all of her clients struggle with this problem.
How can I start if someone’s credit card is maxed out? What good tip or suggestion would you give? What is a good strategy to deal with the debt?
“Start paying your credit card payments and only pay the minimums and get a handle on your cash flow,” she said. “First, get a handle on your spending. Spending isn’t the only reason you might be in debt, but it could be a big reason. Reduce your credit card payments to the minimum. Pay the minimums, relax for a minute trying to get out of debt, and then develop a long-term strategy.”
To get credit card debt under control, Chastain recommends limiting credit card usage to less than 30% of the card limit.
She also suggests reviewing your spending using the last 90 days of bank statements, contacting your credit card companies to negotiate lower interest rates, and considering shifting your high-interest debt to cards with lower interest rates or 0% interest offers.
