Because of their high interest rates, it can be hard to figure out where to start when you want to get out of credit card debt.
Many families turn to the “debt snowball” method to repay their debts, which tackles small balances first. The “debt avalanche method,” on the other hand, focuses on the balance with the highest interest rate first.
While people have their preferred methods, either debt repayment method can make a big difference, and either is significantly better than letting credit card debt grow.
personal finance coverage.
According to data from the US Census Bureau and the Federal Reserve, more than 40% of all US households have credit card debt, with the average American household carrying a balance of $5,700.
In some states, such as Alaska and Wyoming where average household credit card debt is $13,048 and $11,546 respectively, many people are simply drowning in credit card bills.
With the average credit card APR now nearing 18%, it can seem impossible for consumers to keep up with interest charges and make a sizeable dent in their balances each month.
That’s where debt repayment strategies come in — specifically, the popular ”
Source:: Businessinsider – Finance