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Credit Card Debt Archives

Credit cards can help or harm your financial situation

There are several things to think about when you are considering a credit card. One thing is that you will have to repay what you charge. Another thing is that credit card companies make their money off of fees and interest. While fees and interest aren't likely to be much if you use your credit card responsibly, they can add a hefty amount to purchases if something happens and you can't pay the card off in full each month or within a reasonable time.

Do teens and young adults get into debt too soon?

It may not surprise you, but there are more teens struggling with debt today than in the past. In fact, just between 1992 and the early 2000s, the number of teens who took on debt had risen by over 100 percent. Not all of this debt is credit debt; some may be related to college loans or car loans. The point is that it's more common to see that teens and adults between 18 and 24 have found themselves already in a pile of debt.

Know your options for handling holiday debts

Now that the holiday season is over, the credit card bills are rolling in. These bills might not be pretty. You might soon realize that you can't make the minimum payments and keep up with your normal living expenses. If you are in this position, right now is the time to think about how you will handle the situation. You can sit back and do nothing. You can find a second job and struggle to make the payments. You can seek relief from the debt that you suddenly find yourself in.

Debts and the holidays: Americans add close to $1,000

After the holidays, any extra spending you put on credit cards can come back to haunt you. In fact, the average American added $986 in debt during the holidays in 2014. In a survey performed with an national sample of 403 Americans, they reported that the average amount they added to their accounts was $986, and 44 percent of debt holders stated they were stressed about it. Maybe most shocking is that with a 15 percent interest rate and a minimum payment of $25, this relatively low amount can take over 10 years to pay off and include another $400 in interest.

Credit card debt might pile up and lead to bankruptcy

If you are swimming in credit card debt, you might feel like you don't have a way out. This is a difficult situation, especially if you simply can't cover your normal expenses and the minimum payments required on the credit cards. We know that you might have simply become overwhelmed because of circumstances that you can't control. You might have lost your job while you were trying to pay off Christmas expenses. This is a devastating turn of events, but the good news is that you might have an option. 

How can you reduce credit card debt after the holidays?

The holidays tend to be a time when people spend a lot of money, and that can accumulate significant credit card debt. While many can pay those debts back over time, doing so costs more when interest is at play. Sometimes, problems come up, like having hours cut at work or losing a job, which can make it hard to pay them down at all. Here are a few tips for reducing credit card debt, so you can get back on track financially.

Top reasons for major credit card debt

It's certainly possible to use credit cards without having any real debt at all. As long as you only spend as much as you earn -- or less -- every month, then you can pay it off at the end of the month. Most cards don't have any fees if you do this, so it's not that much different than using a debit card or the cash you have on hand. You're just running everything through the card first, perhaps because of the rewards points.