People in South Carolina who have credit card obligations and who receive a tax refund should consider using the refund to pay down that debt. While it may be tempting to spend the money on something more fun, it is worth keeping in mind that paying off a card with a $3,000 balance at 19 percent interest saves over $500 in the year ahead.
Tips for paying off credit card debt
Credit card debt steadily rising
According to data from ValuePenguin, as of November 2015, total consumer debt in the United States stood at $3.4 trillion, and outstanding revolving debt stood at $929 billion. The latter figure represents a nerly $90 billion increase since 2010. The steady increase in the amount of debt held by consumers in South Carolina and around the country is due to a number of factors, including easy credit and incentives to get credit cards.
Details of credit card offers in South Carolina
Paying down a high-interest credit card debt can be difficult as most of the payment goes toward interest. However, it may be possible to transfer that balance to a credit card offering zero percent interest for 12 to 18 months. While such offers are generally available only to those with good credit, some card issuers may allow an individual to add a family member or friend to the account as a cosigner.
Reducing credit card debt in South Carolina
According to a report from Creditcards.com, 21 percent of those who carry credit card debt believe that they will never get out of it. That is up from 9 percent in 2013. However, there are steps that an individual can take to overcome a large debt. The first step is to create a budget, get better at tracking expenses and look for balance transfer offers whenever possible.
Tips for those with credit card debt
Many people in South Carolina have credit cards and might wonder about the best way to pay them off. Staying on top of credit card debt is important as large debts can make it hard to pay for necessities and save for retirement. One report estimated that Americans in debt owe an average of more than $16,000 for their credit cards, but there are ways to help control one's debts.
Study examines debt patterns
California residents who are struggling with financial obligations may be interested in how their debt burden stacks up with that of other Americans. According to a study from the Urban Institute, consumers who have more types of debt also tend to have higher balances on each of those debts.
When to refinance debt in South Carolina
Although a credit card can be helpful for a South Carolina business, there is still the danger of piling up too much debt. At some point, it may become necessary to take action such as paying off the entire balance or refinancing the debt. While paying off the debt may sound like the best option, it means depleting the company's cash reserves.
How to keep a good credit score with outstanding debt
Many people in South Carolina have credit card debt that they can't afford to pay off in full each month. However, outstanding credit card debt does not necessarily have a negative impact on every person's credit score. As long as credit card debt is managed properly, a person can maintain a relatively good FICO score.
Credit card debt after a spouse dies
When married couples in South Carolina are facing the death of one spouse due to a terminal illness, a question often arises as to who if anyone will be responsible for debt that has been incurred through a credit card issued solely in the name of the dying spouse, even if the surviving spouse has been listed as an authorized user. Some issuers will attempt to go after the survivor, although in most cases he or she is not legally responsible for the debt.
Dealing with credit card debt
Households in South Carolina that have around $15,000 or $16,000 in credit card debt are in line with the national average, but repaying that debt still may be a heavy burden. Furthermore, average interest rates mean that if paid at the minimum, the credit card holder might end up paying twice as much back than the amount originally borrowed over a period of several decades. There are a number of strategies that consumers can use to pay down their credit card debts sooner and with less expense.
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