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Money Minute
Quick Tips
Rising Credit Card Debt
Money Minute
How can you keep your credit card spending in check?
 

Reports show that the average American household has $7,800 in credit card debt. The minimum monthly payment on this is about $250 (and most of that is interest) — that’s money that’s going to credit card companies instead of your retirement account. As you can see, if you aren’t paying off that balance in full each month, interest charges are adding to your financial burden.

Clearly, it’s in our best interest to keep credit card spending in check. So if you’re tempted to make a purchase, be honest with yourself and consider if it’s something you actually need, or just something really want. And if you ultimately decide to buy something you don’t actually need, make a commitment to also contribute some money into your retirement account. That way, you’re paying yourself first AND you’re still treating yourself.





Resources: http://www.cnbc.com/2016/03/10/us-credit-card-debt-balloons-to-917b-what-it-means.html

http://www.cnbc.com/2016/03/08/consumers-amassed-71b-in-credit-card-debt-in-2015.html

http://www.cardhub.com/edu/credit-card-debt-study/

http://www.bankrate.com/calculators/credit-cards/credit-card-minimum-payment.aspx

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