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Paying for the items you use every day has undoubtedly become a struggle in the past couple of years. After all, even though many Americans have received pay increases, inflation has wiped out any meaningful economic gains. Indeed, according to reporting from CNBC, when adjusted for inflation, the average worker’s income has dropped by approximately 2.4%. Even if you cut back, scrimp and try to save, you may have little choice but to reach for your credit cards to pay for essential items. You also

Many people struggle with credit card debt, but options exist for them to regain control of their finances. According to CNBC.com, the average balance for credit card holders across the U.S. exceeds $6,100. Considering all the options available to them may help people determine which debt relief path suits their situations, needs and goals. Borrowing money from family or friends Sometimes, people’s credit scores will not allow them to seek a personal loan through a bank. In such cases, they may turn to family and

If you struggle with credit card debt, you may feel a sense of dread when the debt collectors start calling. The U.S. News explains that about 40% of Americans deal with debt collectors once a year. While debt collectors can sue you if they represent a legitimate debt, you do not always have to let it get to that point. Do not become angry Try to stay as calm as possible when debt collectors call. Even if you do not want to stay on the

Credit card debt is notoriously difficult to pay off because of high-interest rates. With the Federal Reserve set to increase rates, it is about to get more difficult for many consumers. How are interest rate hikes likely to impact credit card debt? Federal Reserve benchmark rate The Federal Reserve is in charge of making adjustments intended to encourage spending when inflation is low and slow spending when inflation is high. It accomplishes this by either raising or lowering the Federal Reserve benchmark rate, which is

Social media has exploded in popularity over the past few years. In fact, according to the University of Maine, roughly 4.48 billion people worldwide currently use social media to connect with friends, relatives and even strangers. In 2015, that number was slightly under 2.1 billion. As you may suspect, debt collectors have long sought to capitalize on social media usage. That is, they have wanted to contact social media users about unpaid debts. While this is generally permissible, there are some meaningful rules about what

Credit card debt serves as one of the most common forms of debt in the country, with many people suffering from it at all ages and walks of life. Getting out of this debt can set your life in a better direction. However, the most important thing is knowing what to do to keep from falling back into it later. Handling your payments Consumer Credit discusses how to potentially avoid credit card debt. It all boils down to your habits and how you handle your

As inflation continues to rise, it can be difficult not to use your credit cards. After all, the goods and services you use every single day are presumably more expensive than ever. Still, if you cannot pay off your credit cards monthly, you may notice an immediate decline in your credit score. Your credit score provides an instant snapshot of your creditworthiness to lenders, landlords and even some employers. While many numerical calculations go into determining your credit score, having high revolving balances on your

Credit cards get a bad rap because a lot of people do not understand how to responsibly use them. However, the strategic use of credit cards can benefit you in a number of ways including helping you to build rapport with lenders. Tracking your credit card spending can help you avoid some of the common pitfalls of having plastic money. Catch errors One of the more common causes of erroneous charges to your bank account is when an unauthorized person gets a hold of your

Of all the dangerous and misleading myths circulating about credit scores, one of the most damaging involves your balance. Unfortunately, many people hold a mistaken belief that carrying a balance on a credit card can actually increase your score. Interest-bearing balances actually have no impact on your score, though. Not only does it not improve your score, but it does not give you points with lenders, nor is it necessary to establish credit history. So just where did these rumors originate? Diverse credit mixes and

Digging yourself out of debt will undoubtedly serve as one of the most difficult financial hurdles you will overcome. Of course, once you find your way back out of it, it would make sense for you to avoid getting back into it at all costs. To this end, you can take steps to improve your financial health and work toward keeping yourself out of credit card debt. Avoid borrowing money you cannot repay The Balance discusses ways that you can avoid credit card debt in