Credit Card Debt Has Raised During Pandemic, Survey Finds: How To Pay It Off Quickly

Americans are increasing their credit card spending during the pandemic. Here’s how to pay it back. (iStock)

The coronavirus pandemic has unequivocally placed Americans under economic and social pressure. However, it can be argued that the most impactful stress many people felt was about their finances.

In fact, according to a new survey, more than half of Americans (62%) said their credit card debt increased from before the start of the global pandemic. In addition, 52% of respondents said they increased their credit limits to support the increase in their spending.

But even as debt grows, cardholder spending habits aren’t slowing, and overall sales are increasing in many industries. In June, the US Bureau of Labor Statistics (BLS) consumer price index (CPI) jumped 0.9%.

If you got into debt during the pandemic, consider taking out a personal loan when interest rates are low to pay off high-interest debt. Visit Credible to compare several lenders at once and see personal loan options like a debt consolidation loan to pay off credit card balances.

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How to pay off debt quickly

While many credit cards offer introductory annual percentage rate (APR) periods of 0%, once they start charging interest, they can put significant strain on finances. The average minimum credit card interest rate is 15.56% and can reach 22.87%, according to US News.

If you’re looking to get out of that high interest debt, here are three quick ways to get started:

1. Take out a personal loan: Interest rates on personal loans are falling, up to 10.97% for the week of July 12 for borrowers with a good credit score of 720 or higher. Some personal loans can also see much lower rates. Taking out a personal loan can be a viable option for debt consolidation, but be sure to do your research to choose the one that is right for your specific financial needs.

If you have credit card debt and want to pay it off, consider a personal loan for a repayment plan to free yourself from debt and lower your payments based on the highest interest rates of the issuing companies. of credit cards. Visit Credible to start viewing your debt relief options and get pre-approved with a creditor in minutes without impacting your credit report.

THE FIXED RATES OF THE FIXED PERSONAL LOANS OVER 3 YEARS AT THE LOWEST OF 3 MONTHS

2. Balance transfer by credit card: While using a credit card can be a quick and easy way to make a purchase, it comes with strict conditions and can sometimes cause significant financial stress.

The survey found that 64% of respondents felt stressed about high interest rates, 47% felt the same about annual fees, and 25% were concerned about their ability to make monthly payments. A balance transfer credit card can alleviate some of that stress, as it typically offers an introductory period of around six to 18 months with 0% interest, allowing cardholders to quickly pay off their debts without accumulate interest.

Anytime you’re considering opening a new credit card, be sure to visit a site like Credible so you can view and compare all of the rates, fees, and benefits offered by card type.

3. Mortgage refinancing with withdrawalAmid the increase in spending by Americans, 30% of survey respondents said they buy things they need, rather than things they just want. And 65% said they made purchases with a credit card for which they currently didn’t have the funds.

Soaring home prices have given homeowners the ability to borrow against the equity they have already built up in their home, take out home equity lines of credit to pay off high interest debt, and consolidate monthly payments. . Mortgage refinancing with withdrawal offers a variety of benefits such as lower rates and possible tax deductions, but it’s important to be aware of the closing costs involved and the potential additional cost of private mortgage insurance.

If you’re having trouble making your payments, consider signing up for low-interest withdrawal refinance to help you with high credit card balances and lower your monthly payments by consolidating credit card debt to. high interest. Visit Credible to compare your options.

Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.

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About Joan Ferguson

Joan Ferguson

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