Ways to manage credit card debt

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HUNTSVILLE, Ala. (WAFF) – Credit cards offer great benefits such as access to emergency funds, protection against loss due to theft or fraud, and reward programs that offer cash back. But, it is also easy to exceed or top up credit limits for real income, especially when costs are rising, but at a high interest rate.

WAFF spoke to Redstone Federal Credit Union expert April James about ways to manage credit card debt:

  1. Have a budget and watch your expenses: Credit cards should not be used to finance an unaffordable lifestyle. Limit impulse spending and try not to spend more than 30% of your credit limit. Not only does this improve your credit score, but it can also help you manage your debts and lower your minimum monthly payments.
  2. Transfer credit card debt to zero percent balance transfer cards: While taking advantage of the zero rate, make duplicate payments to pay off your debt
  3. Consolidate your personal loan debt: This will likely give you a better interest rate than your current credit card loan.
  4. Pay your balance each month: Most credit cards have a grace period after charges have been made before interest begins to accrue. By paying off your statement balance, you can eliminate significant interest charges that will eventually increase your balance.
  5. Opt for credit cards that offer rewards: By paying down your balance each month and receiving rewards, you’ll actually get value from using your credit card.
  6. Conclusion : Credit cards have advantages and disadvantages. Choosing the right credit card and using it correctly will ultimately help you control your credit card debt so it doesn’t control you.

For more ways to save, be sure to tune in at noon every Friday for the “Financial Friday” segment of WAFF 48.

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