The average American consumer now has $6,194 in credit card debt, according to Experian.
There's no set number that qualifies as"too much" credit card debt. What one person would define as an overwhelming debt burden could be a completely manageable amount to another. That said, most financial planners are of the mindset that ANY amount of debt on which you're paying a double-digit interest rate is too much.
With that in mind, if you have high-interest credit card debt and are tired of your hard-earned cash going straight to your creditors' pockets, here are two ways you could take control of the situation and set yourself on the path to freedom from that debt.Competition in the credit card industry has never been higher, and as a result, there are some excellent offers on the market. Many of these offers are in the form of 0% APR balance transfers.
Here's why this can help: Let's say you open a new credit card that offers a 0% APR on balance transfers for the first 15 months. By transferring your existing credit card debt onto your new card, every dime you pay toward your credit card debt will be applied toward principal, not interest, thereby getting you out of debt faster.. Some have excellent reward programs, no annual fees, and other perks.
Depending on the lender, personal loans can be obtained in amounts as high as $100,000, and with repayment terms as long as 72 months . Personal loans generally have fixed interest rates, and if you have good credit, you can probably find a lower APR than your credit cards charge. With a personal loan, you can get a fixed monthly payment and a set repayment length for your debt.
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