BEAVERCREEK — Credit card debt is at an all-time high as people work to cover the costs of everything from day-to-day expenses to splurges.
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With the holidays around the corner and sale after sale already starting, chances are some people in the Miami Valley are taking a close look at their credit cards and the debt they may already be in.
“My biggest feat is that if they tap their credits dry, that they might not really be able to afford their essentials,” Sarah Foster, a Bankrate analyst, said.
Foster said credit card debt is hard to come out of.
“It really is just this never-ending cycle,” she said.
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Bankrate found that nearly two in five credit card users have maxed out a card or come pretty close to maxing one out just in the last two years.
“If you have credit card debt, the best option for you to get rid of that credit card debt and supercharge your debt payments is pursuing a balance transfer card,” Foster explained.
If you’ve been living with a high balance on your credit card for quite some time, that may be hard. One thing that really impacts your credit score is how much you’ve charged onto your card.
“Most issuers would like to see you maintain a utilization rate of less than 30 percent,” Foster said.
As reported on News Center 7 at 5:30, to fix this, Foster said cardholders should start by looking at their personal finances.
“It’s a good idea to just look at your budget,” she said. “Think about how you can fit in with that utilization ratio that’s recommended to be less than 30 percent.”
Those struggling may need more help. Foster said there are non-profit credit counseling services, like GreenPath.
“What you really want to focus on is just making sure that all of your debt payments aren’t just going toward interest,” she said. “That they’re actually making headway on the balance that you’ve accumulated.”
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