According to a recent survey, 40% of Americans with credit card debt are under the impression that making minimum payments is an effective way to manage their debt.
This misunderstanding is contributing to the escalating credit card debt in the country, which has now hit a record high of $1.2 trillion. The survey was carried out by Experian.
It revealed that a large number of Americans falsely believe that making the minimum payment on their credit card debt is enough to keep it under control. This misunderstanding is contributing to the growing credit card debt in the United States, which has reached an all-time high.
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According to the Federal Reserve Bank of New York, American consumers collectively owe $1.2 trillion in credit card debt.
Experts suggest strategies such as the “snowball” or “avalanche” methods to effectively manage and pay off credit card debt. Both methods have their pros and cons, and the choice depends on what works best for the individual.
The issue of credit card debt is a serious one, with experts stressing the importance of strategic debt management.
“Credit card debt is the highest cost debt for most households. This is definitely one to prioritize for your financial wellbeing,” Ted Rossman, senior industry analyst for credit cards at Bankrate told CNBC.
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