CHARLOTTE — A study out this month found families racking up more credit card debt each month.
WalletHub says the average North Carolina household owes $10,600, and that the average South Carolina one: $11,000.
“It is staggering,” WalletHub’s Chip Lupo, who happens to be based in the Carolinas, said. “It is as bad as it sounds.”
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He says main culprits include inflation and wages not keeping up.
“And when you factor in the average interest rate of about 22/23% and people are only paying the minimum, making the minimum monthly payment, you can find yourself in a tremendous amount of debt really quickly,” he said.
So what can you do about it?
Action 9 attorney Jason Stoogenke says:
- Don’t be afraid to negotiate. See if your credit card company will give you a better rate.
- If you have a major purchase coming up, you may want to open a new credit card, one offering 0% interest. Just make sure you read the fine print and still be sure to pay it off each month.
- Consider consolidating your debt with—what’s called—a “balance transfer” credit card.
But Stoogenke has a few words of caution about the last option:
- Usually, you need good credit to qualify for “balance transfer” credit cards.
- Most of these cards charge a transfer fee.
- The interest rate will go up after the promotional period.
At least two nonprofits that help consumers eliminate debt: GreenPath and Money Management International. Both charge about $30 each month, and the average client seems to wipe away debt in about two to three years.
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