Maybe your credit card balance slowly accrued over time, or perhaps you had to cover a significant, unexpected expense with your card. Whatever the case, if you’re carrying a monthly credit card balance, it might be time to focus on paying it off. Even if it feels daunting, credit card debt payoff is possible.
Once you pay off your credit card balance, you might feel like a weight has been lifted. With credit card debt out of the way, you can focus on saving for the future and strengthening your financial situation.
Some might find it helpful to explore the leading causes of credit card debt, as once you’re made aware of them, they can be easier to avoid in the future. Here are some of the most common and a few strategies to help.
6 Leading Causes of Credit Card Debt
While the math of how credit card debt occurs makes sense, like spending more than you have or can afford, people still carry a lot of it. It seems simple enough to say if you don’t have the money, don’t buy it, but life is more complicated than that, and things happen out of our control.
Here are a few of the most common causes of credit card debt:
- Change in employment
- Relationship changes
- Overspending
- Medical expenses
- Lack of savings
- Making only the minimum payment
While these are some of the most common causes, your situation might differ, and no reason is more or less valid than another. By understanding how you got into credit card debt, you can start to take steps to change things.
Take Stock of All Your Credit Card Debts
If you hold balances on multiple credit cards, consider compiling a list of:
- How much you owe
- The interest rate
- The minimum monthly payment for each card
A spreadsheet provides a helpful way to update your progress, but pen and paper work too. Before you explore strategies, it’s beneficial to know where you stand.
Use a Credit Card Debt Calculator
Figuring out numbers and percentages associated with credit card debt can be confusing, but it’s something you need to know. A credit card debt calculator is an easier method of obtaining a clearer picture of your credit card debt.
A good one will include things like your total balance across all cards, monthly payments, interest costs, and even suggestions on ways to pay off credit card debt faster.
Consider Credit Card Balance Consolidation
Are you searching for an option to tackle your credit card debt? Instead of taking on more credit card debt or spending countless hours researching “what is a good APR for a credit card?” consider consolidating your credit card balances to a single loan with an attractive APR.
A credit card balance consolidation company can combine multiple payments into one single monthly payment.
About Tally
Tally wants you to worry less about credit card debt payoff and get back to focusing on what really matters. The Tally app was created to help level the intentionally complex and complicated financial playing field, and offers resources such as a credit card interest calculator and financial blog. Tally is unlike other financial brands in that it forges personal bonds with people, helping better support its members. It takes just a few minutes to apply and get started with the Tally app. Try Tally when you need help with credit card debt.
Learn more about Tally’s credit card balance consolidation services at www.meettally.com
Disclosures: Tally Technologies, Inc. (NMLS # 1492782 NMLS Consumer Access. Lines of credit issued by Cross River Bank, Member FDIC, or Tally Technologies, Inc. (“Tally”), as noted in your line of credit agreement. Lines of credit not available in all states.
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