Credit card debt 101

Started by Danielle B.
Followed by: @Danielle @Samuel @Sylvia @George @Olga @George @Jan @"Kapil Dev" @John @Melissa @Sarah @"Sherrie D" @ROGER @Michele @Cassandra @Neosha @Roberta @Jenera @Monica @Spencer @Sharlene @Jack @Christine @Tara @Rebecca
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Danielle B.

Credit card debt is something I try to avoid at all costs because the interest rate can pile up each month that the debt isn’t paid in full. I’ve learned to treat my credit card like my debit card so that I can avoid overcharging.

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Sylvia R.

Agree. I believe it is recommended (and just smart) to pay off your balance in full every month. If you can't do that, then you're spending too much on your card!

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Olga A.

I have way to much debt because one I have overindulged in helping out family members and 2) my daughter is irresponsible with money

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Danielle B.

@Olga, it's always tough when it comes to helping out family. Have you done anything recently to set healthy boundaries?

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Melissa S.

Approximately what % of your credit card limit should you have charged?

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Danielle B.

@Melissa – There are many articles that cite 30% as the "right amount" to aim for when it comes to credit utilization/usage (one such article: http://bit.ly/2NHDXhR).

Keeping credit utilization low and paying off your credit cards before their due date also factor into your credit score. Keeping it low also helps make paying off your card more manageable! At least in my experience.

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John T.

I have heard 30% to 35% credit utilization/usage. I like to use my credit card to get gas so I can pay it off on time easier.

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Danielle B.

I have heard 30% to 35% credit utilization/usage. I like to use my credit card to get gas so I can pay it off on time easier.

Oooh, this is one of the expenses that I like paying for with my credit card too, John!

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Kapil Dev T.

Using less than 30% of overall and individual card limits is best and also it is very important to keep paying the full amount month after month to build a solid payment history

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Roger B.

Credit card debt is a huge waste. Do you realize that using a credit card means you are still paying for a pizza you ordered in 2018?

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Roberta M.

I am trying to dig myself out of credit card debt this year with the Avalanche method. I really want to make a big dent into my debt by the end of the year.

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Danielle B.

I am trying to dig myself out of credit card debt this year with the Avalanche method. I really want to make a big dent into my debt by the end of the year.

Go, Roberta, go!!

I'm using the snowball method to tackle my debt. I also have this method where once I paid off one student loan, I use the money I would've used for it and put it towards my next loan.

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Roberta M.

Thank you ! I am determined to get out from my debt this year!

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Cassandra B.

I am trying to get out of credit card debit right now as well. We ended up using more than we thought we were going to have to during a move. Thankfully all of them are working with me to get everything taken care of. And when income tax comes in they are being paid off.

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Spencer H.

The key to credit cards is self-control and discipline! I love using my credit cards to buy EVERYTHING I can with them (that doesn't charge me an additional fee) because I build up points and rewards. I typically pay my credit cards off every week or two to be sure I don't carry a balance, and never spend more than I can afford to pay off right away. In the end I benefit with $100's in rewards each year for spending what I would anyways. :)

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Jack S.

The payments of the debit card become a lot easier nowadays. IVA is available now which freezes all tax and interests. The debt relief order can be easily done using IVA. It is also giving you legal protection.

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