$3,000 Credit Card Debt
Filed under Credit
Having a $3,000 credit card debt is not at all unusual, especially in today’s economic climate when just about everyone is having a tough time keeping up with their bills. While having debt is usually not a good thing, unfortunately it is something most of us have to deal with every month.
With the average interest rate on a credit card close to 20%, carrying $3,000 of debt on your credit card can become a costly proposition. Even cards with the lowest interest rates cost you money. When you check your statement each month, you will notice that the amount of interest charged for the privilege of using the credit card can be substantial. Also known as the finance charge, the cost of carrying debt can be $30 or $40 per month on a $3,000 balance.
High Balance Credit Card Debts
There are two types of people that have high balances on their credit cards. Most struggle with their monthly bill payments, and never seem to be able to save. Managing debt means not spending more than you earn. You will never be able to pay off your debt if you consistently spend more than you make.
Even if you have a credit card with one of the lowest interest rates in the business, your debt can build up quickly. It is easy to go in to a store, hand over your credit card and make a purchase. At the time, you do not think about the consequences of your purchase and the fact that it only pushes you further in to debt.
Make As Much Payments As Possible
Managing debt requires will power and the desire to turn your financial life around. As long as a person can make at least the minimum bill payments each month, they can be lulled in to a false sense of security when it comes to credit card debt. It is not enough to only pay the minimum. Ideally, you should not carry a balance on your credit card for more than a month or two.
If you do have a $3,000 debt on one of your credit cards, you should stop using the card and focus on paying the balance down. Pay as much as you can each month so the balance will start to go down. Work toward a goal. Every $500 you can reduce the debt by is a milestone that is achievable. Taken in steps, you will eventually pay off everything you owe and once again feel free.