Money Minute: Tips for staying out of credit card debt
PITTSBURGH (KDKA) -- When a big bill comes, or you're just about out of money right before payday, credit cards come in handy. But if you're not careful, credit card debt can quickly get out of control.
Credit card debt is an easy debt to rack up. A recent survey found that 55% of Americans are concerned about paying off their credit cards this year.
No surprise, Americans have $986 billion in credit card debt to pay off, says the Federal Reserve, up 17% from last year.
Those cards are so easy to use and we tend to think $20 here, $50 there -- we can handle that. And then the total monthly bill arrives.
With interest rates averaging 21% on your credit card, this is a debt that needs to be paid off first and failure to pay at least the minimum will kill your credit score.
Another challenge: how to stop using that credit card so much. One way is to pay in cash or, if you must, use a debit card.
Paying exorbitant interest on credit card debt is a horrible waste of dollars and you owe it to yourself to end that. You can learn more here.