According to data provided by the Federal Reserve Bank of New York, Americans owe around $925 billion in credit card debt. A large increase from the $887 billion that was due at the beginning of 2022.
Most people have debts that they want to get out of, but can’t find how. With the current high cost of living to cover basic needs, more car payments, insurance, medicines, etc., there is no salary that reaches.
If in addition to that, you do not receive a high income, and most of the time you find yourself with a tight budget, this seems like an impossible mission. That is why today we will give you some tips that you can follow to reduce your credit card debts.
Tips for managing your credit card debt
Always remember to take into account what your purchasing power is based on the income you have, and not want to live beyond what you can really afford. Having debt is a really overwhelming situation, so keep the following in mind:
- Stop using your credit cards. If you already have accumulated debt, the worst thing you can do is acquire more. Before you continue buying, make sure you cover the debts you already have, so that they do not increase and you find yourself in a situation that will be even more difficult to get out of.
- Review your financial situation. Make a list of the basic expenses that you can’t stop covering, the amount of debt you owe, and the income you’re earning. Having a clear picture will help you know where your finances are so you can create a plan.
- Cut unnecessary expenses. Once you have a clearer financial picture, then you can start to see where and how to cut expenses on things you don’t really need. By making these cuts, you will be able to use that extra money to pay off your debts.
At the Faloni legal firm we can advise you if you find yourself in a difficult situation with the credit companies. Get in touch with us and schedule an appointment!