If you’re like many Americans, you might be using credit cards to make ends meet. It’s certainly understandable. Soaring gas and food prices make credit cards a necessary resource for many of us. How much do we actually rely on credit cards, and how well are we handling our debt? Dara Duguay of Citigroup Inc shared this snapshot of American cardholders:
Experts recommend making more than the minimum payment on your credit card balances. Look for lower-interest cards, or transfer existing balances to 0% interest cards. Monitor your expenses for two weeks and set a budget that will allow you to get out of debt faster. Get rid of cards you don’t need, unless you can refrain from using them to get yourself back into debt. A good debt-to-credit ratio will improve your credit score. That, in turn, will get you the best deals on credit cards and other financial services.
- Most cardholders carry a balance from month to month.
- The average credit card payment is only 3-4% of the customer’s total balance.
- The average customer has nine credit cards.
- Subprime credit card applications rose 30% this year.
Experts recommend making more than the minimum payment on your credit card balances. Look for lower-interest cards, or transfer existing balances to 0% interest cards. Monitor your expenses for two weeks and set a budget that will allow you to get out of debt faster. Get rid of cards you don’t need, unless you can refrain from using them to get yourself back into debt. A good debt-to-credit ratio will improve your credit score. That, in turn, will get you the best deals on credit cards and other financial services.
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