(WWBT) - More than 60 percent of Americans carry credit card debt!
It's something that a lot of people deal with and the debt can get out of control before you realize what's happening.
A big red flag is if you're only making the minimum payment on your credit card. The minimum payment is really just paying for the interest that's accruing on your account, meaning you're not actually paying down your balance. If that's the case - you'll be in debt for a long time.
When it comes to how much you should be spending on those credit cards, Cherry Dale with the Virginia Credit Union says there's a ratio to keep in mind and it all depends on your credit limit.
"Keep it around 30 percent. So, for example, if you can borrow a $1,000 on a credit card, you really don't borrow over 300 on that set credit card. That will help your credit score and it will keep you contained as far as how much debt you're getting into," Dale said.
But what can you do if you're already drowning in credit card debt? Experts say there are a couple ways to do this.
If you have multiple credit cards, you should focus on paying off one of them by putting extra money towards that card. The other option would be to take out a new credit card with a low-interest rate and consolidate your debt. That way you can focus on just one payment every month.
But the most important thing you should remember is to never miss a monthly payment because that will certainly impact your credit score - and only leave you deeper in debt.
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