{"id":104114,"date":"2021-02-06T13:31:17","date_gmt":"2021-02-06T13:31:17","guid":{"rendered":"http:\/\/evertise.net\/?p=6726"},"modified":"2021-02-06T13:31:17","modified_gmt":"2021-02-06T13:31:17","slug":"what-to-do-when-youre-drowning-in-credit-card-debt","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2021\/02\/06\/what-to-do-when-youre-drowning-in-credit-card-debt\/","title":{"rendered":"What to Do When You\u2019re Drowning in Credit Card Debt"},"content":{"rendered":"

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Most Americans have debt to some degree nowadays. But there\u2019s a huge difference between carrying debt and being overwhelmed by it. Unfortunately, many borrowers are finding themselves struggling with financial obligations \u2014\u00a0particularly those known to carry high interest rates, like credit cards. What can start out as normal spending can become expensive and out-of-control very quickly when average annual percentage rates (APR) between 15 and 23 percent<\/a> accumulate on those balances.<\/p>\n

What are your options when you\u2019re drowning in credit card debt<\/a>?<\/p>\n

These actions may help the situation.<\/p>\n

Put All Your Debts on the Table<\/strong><\/p>\n

The first step toward getting a game plan is taking stock of all your debts. This can be daunting, especially if you\u2019re not currently sure exactly how much you owe and to whom. As tempting as remaining in debt denial<\/a> can seem, putting all of your debts on the table is a major step toward taking back control.<\/p>\n

Many people find it helpful to enter all their debts into a single spreadsheet, with separate columns for balances, minimum payments due and APR. This makes debt easy to compare and prioritize as needed.<\/p>\n

For instance, ordering and tackling debts from highest interest to lowest interest will help you attack balances with an \u201cavalanche\u201d mindset with the goal of lessening interest payments. \u00a0Ordering and paying down debts from smallest balance to biggest balance represents a \u201csnowball\u201d mindset that can help you build up confidence and momentum. Always be sure to keep up on minimum payments to avoid delinquency, regardless of your payoff plan.<\/p>\n

Get a Spending Plan<\/strong><\/p>\n

Besides optimizing how you\u2019re paying off debts, it\u2019s also important to address your spending habits. While you\u2019re logging your debts \u2014\u00a0an important first step in budgeting \u2014 log your income and other monthly expenses, too. Now you have a working budget off of which to understand your spending patterns and streamline where possible.<\/p>\n

Here are some rules of thumb outlined by <\/a>CNBC<\/em><\/a> to avoid increasing your existing credit card debt:<\/p>\n