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Consumer Debt Jumps, Tips to Reduce Credit Use

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Credit card swiping is 1surging to record-highs. In February, Americans 2racked up the most monthly consumer debt in over a decade. Just released data from the Federal Reserve shows consumer debt jumped by nearly $42 billion in February. 3Revolving credit which includes credit cards, jumped by more than 20 percent. Experts say with interest rates on the rise, the cost of borrowing is climbing, 4potentially raising balances on your credit card bill.

“I know this is easier said than done... is pay down those credit card bills, keep them 5paid off.”

David Michalek from Credit Versio says soaring inflation in the US is driving up that debt. As household savings are drying up... consumers are taking on more credit card debt to afford price increases seen everywhere. Michalek recommends you use this time to rethink and restructure your budget… find a way to use credit cards more 6responsibly.

“Try to use them as cash if you can or like cash meaning use the card, pay it off every month if you can."

And another tip, consider 7consolidating all of your credit card debt on just one credit card.

“Let’s say you have 4 or 5, 6 credit cards and you have little balances on all of them. That is really high risk.”

Finally, considering using your 8frequent flyer points to pay off your credit card debt.

“Those points today, one year from now as inflation goes up by 8%, they will be worth 8% less a year from now.”

Article from: https://cnn.ybmnet.co.kr/cnn_class/2391