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Credit: Too Much Of A Good Thing

BOSTON (CBS) – A cashless society is closer than you think. Cashiers can’t make change. They don’t get enough practice. And if you give them $2 and a quarter and penny for something costing $2.21 you may never see your nickel change.

There are more than 1.8 billion credit cards currently in circulation in the US. The average consumer is carrying 4 credit cards. This is big business.

According to Value Penguin a financial website, average credit card debt for a Massachusetts resident last year was $5,700.

And those with the worst debt often have not added it all up. If you are serious about getting out debt, you need to know how much debt you have.

If you are coupled, you really need to do this together. It will not be successful if only one of you considers the debt a problem.

Make a list of all of your debt. List each credit card and in separate columns list the interest rate and how much you owe on each card. Seeing it written often times is motivation to do something about it.

Get copies of your credit reports and credit score. Correct any mistakes and begin the process of improving your credit score.

Contact each of the credit card companies and ask them to lower the interest rate on your cards. If the first person you speak with will not lower your rate ask to speak to their supervisor. Tell them you are considering moving the balance to another company.

Put away the cards and use cash only. No more charges until the debt is paid off. You can do this! We’ve heard from many listeners who have been successful at getting out of debt.

Begin to pay off the credit card with the highest interest rate aggressively. If you have cards with small balances pay those off. If you have a card with a very low interest rate consider transferring your balance from your other cards to that one. Check what the transfer fees will be before transferring.

If you can’t manage it on your own consider getting some help; the National Foundation for Credit Counseling is nationwide.

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You can hear Dee Lee’s expert financial advice on WBZ NewsRadio 1030 each weekday at 1:55 p.m., 3:55 p.m., and 7:55 p.m.

Subscribe to Dee’s Money Matters newsletter here.

More from Dee Lee
Comments

One Comment

  1. I can;t believe Dee gets paid for all these “duh” articles.

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