Digging Out of Holiday Debt

Digging Out of Holiday Debt

Now that the post-holiday bills have started creeping in, many people are quaking in their boots at the thought of hefty bills eating away at their bank account. The pandemic has been a harsh reminder of how fleeting financial security can be, especially for younger generations.

The Pandemic Drives Credit Card Debt

Although new research shows that credit card debt did not hit the record highs experts in the U.S. originally predicted, this still didn’t stop most consumers from turning to credit cards. Since more than 50 million Americans found themselves out of work due to government-ordered shutdowns.

The Pandemics Lasting Impact

As if being hit by a pandemic during some of your most formative years wasn’t enough, 70% of Gen Z respondents said the pandemic was the reason they took on more credit card debt compared to 46% for Millennials. On top of this, 18-24-year-olds were 45% more likely to carry debt from month-to-month.

Need Help Digging Out

If you feel like your debt and interest rates have gotten out of hand, try calling your creditors to renegotiate your interest rates. If you’ve been able to keep up with your payments and haven’t missed any in the last twelve months, your creditors might be willing to reduce your rates.

Debt Snowball Method

The debt snowball method is a strategy where you pay off debt in order of smallest to largest, gaining momentum as you pay off each remaining balance. When the smallest debt is paid in full, you roll the minimum payment you were making on that debt into the next-smallest debt payment.

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