Jan 16, 2024
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Gen X racked up the most credit card debt in 2023, according to Experian, at an average of $7,155 per person.
As a part of the sandwich generation, these middle-aged adults are more likely to be caring for both their aging parents and their own children, while simultaneously – leaving them no choice but to put these extra expenses on their credit cards.
Total credit card debt has reached a record $1.13 trillion, according to the Federal Reserve Bank of New York.
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As high inflation and interest rate hikes pervade, large credit card debts become increasingly harder to pay off. Fortunately there are strategies you can use to dig yourself out faster – no matter your age.
How to get rid of your credit card debt
Regardless of what year you were born in, consider employing these tactics to help make your debt more manageable.
1. Consolidate your debt
Credit card interest hits harder because it compounds, which means even your interest accumulates interest. So if you’re juggling multiple credit cards, while only making minimum payments every month, you'll be paying a fortune on top of your debt.
Try Credible, a free online service that shows you the best lending options to pay off your credit card debt fast – and save a ton in interest.
Credible lets you comparison-shop for the lowest interest rates – it’s totally free and it won’t hurt your credit score. Depending on how much you owe, you could save thousands in interest in the long run.
2. Save on mandatory expenses
Your accumulated savings will have less of an impact if you’re throwing money away on mandatory expenses like home or car insurance, given that there are often more affordable options on the market.
SmartFinancial sorts through multiple home insurance quotes and BestMoney.com does the same for auto insurance companies to find you the lowest rates available in your area – it only takes a few minutes and it’s absolutely free to see your options.
All you have to do is answer a few quick questions about yourself, and you could shave hundreds off your monthly bills.
3. Monitor and improve your credit score
Your credit score has a major impact on multiple aspects of your life. If it’s low, you’ll pay higher interest on things like credit cards, car loans and mortgages and you may even be considered an untrustworthy prospect to potential employers and landlords.
That’s why it’s important to monitor your credit and keep yourself in the driving seat of your finances. Once you know what your score is and whether you’re suffering disadvantages, you’ll also know how much room you have to improve.
Credit Sesame is a credit and loan platform that does it all: it will provide you with a free credit score, as well as its free credit monitoring service, and walk you through the steps to improve your score.
You’ll be able to view your credit score whenever you want, and can view your spending accounts all in one place. This way you’ll always know exactly where your credit stands so you can continue to make the best financial decisions for yourself and pay off your debt faster.
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