AMERICANS have accumulated $16.5trillion dollars of debt and are – obviously – having a hard time paying it off.<\/p>\n
The average credit card<\/a> debt among consumers is $5,221. <\/p>\n 1<\/span><\/p>\n<\/div> These went down by only 1.8 percent last year according to a consumer credit review. <\/a><\/p>\n As prices continue to rise, more and more people are having to choose between paying debts and buying groceries<\/a>. <\/p>\n Higher interest rates<\/a> are also making it harder to pay debts, and more expensive to let them linger. <\/p>\n There are a few things you can do to lower your debt even if you don’t have extra cash. <\/p>\n Matt Schulz, chief credit analyst at LendingTree, spoke with CNBC<\/a> about some of these tactics.<\/p>\n The annual percentage rate (APR) your credit card company charges can usually be lowered if you just ask.<\/p>\n Credit-reporting company Experian suggests<\/a> you do this on the account you’ve had the longest. <\/p>\n The issuer may not agree to a permanent reduction, so you can ask to have it lowered for a few months or a year. <\/p>\n If your credit score recently went up make sure to mention it as it can give you a better chance of getting a lower rate. <\/p>\n Transferring your balance <\/a>to a zero percent interest card could let you pay down your debt without paying interest for a year or more. <\/p>\n These introductory offers often come with fees, limits and deadlines, so make sure to read the fine print before applying.<\/p>\n \u201cIf you use a 0% balance transfer credit card wisely, it can be a really, really powerful tool against credit card debt,\u201d Schulz said.<\/p>\n Although it sounds counterproductive, a low-interest personal loan can help you consolidate your debt. <\/p>\n Since the rate will likely be less than the one you pay for credit cards, you can also save money while paying down debts. <\/p>\n However, personal loans do come with fees, so you’ll have to make sure you’re not spending more money. <\/p>\n Rather than waiting to get your tax return to pay off debts, consider adjusting your tax withholdings. <\/p>\n This will allow you to collect more money from your paychecks rather than waiting to get it back during tax time. <\/p>\n You should make sure any changes you make won’t leave you owing money during tax season. <\/p>\n Obviously, this isn’t an easy thing to do if you’re barely able to pay for essentials. <\/p>\n But if you can, limiting your credit card usage or stopping it completely will stop you from accumulating more debt.<\/p>\n Even if you’re trying to rack up points or cashback rewards, the interest rate will hurt you more than either of those could benefit you. <\/p>\n If you have a large pile of debt, it’s likely affected your credit score. <\/a><\/p>\n A\u00a0poor credit rating<\/a>\u00a0makes it tougher to borrow, which will affect how you make big purchases like a car or a home<\/a>. <\/p>\n You may get approved for a loan, but your score could result in a higher interest rate. <\/p>\n Making multiple small but timely payments can slowly boost your score over time. <\/p>\n It doesn’t directly improve your score, but you’re more likely to pay more than the minimum due, which means your balance will drop faster.<\/p>\n You’ll also avoid any late payment fees, which will increase your rating over time.<\/p>\n You can also become an authorized user on someone else’s credit line.<\/p>\n Of course, that person will need a strong financial track record of making timely payments. This could be your parent, relative, or close friend.<\/p>\n And yes, if you miss a payment, or rack up big balances, the primary holder could see negative changes to their credit report.<\/p>\n But nevertheless, as long as you make payments on time, this could be an effective way of boosting your credit score.<\/p>\n In just three months of becoming an authorized user, people have seen their credit scores improve by 11 percent, according to a 2018 study by Credit Sesame.<\/p>\n![\"Americans](\"https:\/\/www.the-sun.com\/wp-content\/uploads\/sites\/6\/2022\/12\/desperate-young-woman-sit-sofa-784304666.jpg\")
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<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n1. Ask for a lower APR<\/h2>\n
2. Look for a 0% balance transfer card options<\/h2>\n
3. Look at a personal loan<\/h2>\n
4. Check your tax withholdings<\/h2>\n
5. Limit your spending<\/h2>\n
Improving your credit score<\/h2>\n
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