GREENVILLE, NC (WNCT) – The holidays may have come to an end, but for many – the debt acquired hasn’t.
At least 37% of Americans obtained new credit card debt this holiday season, and according to creditcards.com, more than one in five thinks they’ll never get to a zero balance.
I talked to a local financial advisor who says it’s possible to become debt-free.
“The interest rates that you pay is probably the first place to look,” said Jon Randall, Platinum Financial Advisor.”
The higher the interest rate, the more you’re going to pay each month, so try and move those payments to a card with a lower interest rate.
“Sometimes credit cards offer maybe a zero percent balance that can be a temporary place to at least move that so you’re not paying interest.”
If you don’t want to move payments, simply ask your credit card company for a lower interest rate. They want to keep your business and many people have luck getting their rates reduced.
The next plan of attack – start with the small balances first.
“When somebody has a lot of different payments, that can really eat into your cash flow. If you can wipe out a smaller, eliminate that payment, you can put that payment towards other places.”
John Britt says that’s his plan of attack.
“This holiday season I definitely spent a little more than expected.. spent a little more money on Christmas gifts and it kinda added onto my expenses this year.”
“One step at a time helps,” said Randall. “Maybe allocating just $20 a month, maybe $40 a month, maybe it gets up to $100 a month towards paying those down. It’s a journey but it can be done.”