Paying Down Credit Card Debt

Continue Your Financial Health in 2021

Did you know that U.S. consumers paid down a record amount of credit card debt in 2020? Despite this feat, Americans still harbor a fair amount of credit card debt. According to a report from the Federal Reserve, Americans began 2020 with $1.09 trillion in credit card debt—an all-time high. Here are some tips to help you pay down your debt.

• Determine your exact amount of debt. It will help you know exactly how much it will take to either pay off or at least pay down your debt. List the balances, interest rates, due dates, and minimum payment for each card.
• Decide on a plan to tackle your debt. You could pay off the card with the highest APR (Annual Percentage Rate) first, which reduces the amount you’re paying for interest and save money. Or you could pay off the card with the lowest balance first, which doesn’t save as much money but can keep you motivated to continue on the path of paying down debt. Once you select a course of action, get to work!
• Create a budget. Make sure to create one that works for you – one that leaves you with enough money to pay down that credit card debt but also unexpected expenses as well as some fun every now and again.
• Talk to a professional. Wescom is here to help! Schedule an appointment with us by clicking here or calling 1-888-4WESCOM (1-888-493-7266). We can help you plan your financial journey from debt to financial freedom in the New Year.

To figure out how you can consolidate and payoff debt, use Wescom’s free Financial Calculators.