If one of your resolutions for 2018 is to pay down or even pay off your credit card balances, you should know that experts say there's a way to do it that will help you optimize your payments and ultimately lessen the interest you accrue. Of course, interest is a significant amount of many people's credit card balances.
Recently, we discussed the high amount of credit card debt held by Generation Xers and the fact that it's keeping some from saving for retirement, which is growing near for many of them. Their children, popularly referred to as millennials (those 18 to 34 years old), seem to have a healthier respect for the importance of preventing credit card debt from overwhelming them -- and even a fear of it.
When people carry a significant amount of credit card debt, virtually every area of their financial lives can be impacted. That includes how much money, if any, they're saving for retirement.
Credit card debt is a rough topic for a lot of Americans. It's easy to get into -- especially if you hit a difficult financial patch and find yourself relying on credit cards for basic necessities.
It makes sense that many people would think twice before marrying someone with significant credit card debt. After all, this is the person you'll be intertwining finances with for potentially the rest of your life. How responsible that person is with money as well as his or her credit rating are important.
Many people are used to placing large or unexpected expenses on their credit card. Of course, if you can't repay the entire balance when the next card payment is due, you could end up having to pay a significant amount of interest.
Many people pull out a credit card to pay for purchases without really thinking about the consequences that can come from that decision. It is possible to use credit responsibly, but it is also possible that something will happen that means you suddenly find yourself in debt too deep for you to come out of. One example of this is when you suddenly find yourself out of work and unable to keep up with payments that were once easy to make.
Credit cards can have many advantages if you choose the right ones and use them responsibly. With so many cards to choose from, you can select the ones that give you rewards, cash back or other benefits without annual fees. If you pay your card off in full each month, you can avoid interest charges.
You've always heard about how credit cards have such insane interest rates. Then you get an offer in the mail for a card with a 0 percent introductory rate.
Many Americans are not saving enough money for retirement, or even enough to have a cushion if they face an emergency or incur unforeseen expenses.