Getting rid of your debt doesn’t have to be a challenge.
However, some methods are better than others, according to a credit card expert from US News & World Report.
Beverly Harzog joined FOX Business’s “Mornings with Maria” Thursday to detail the latest investigation which found that more than half of Americans said they believed most of their unsecured debt came from credit cards.
Responses showed that 53% of consumers said credit cards are primarily to blame for unsecured debt ranging from $ 10,000 to $ 40,000.
While unsecured credit card debt is not tied to physical assets, businesses can report overdue payments and negatively impact your credit score.
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Harzog offers two options that she says are the âmost attractiveâ ways to pay off your unsecured credit card debt: a debt consolidation loan or a credit card with balance transfer.
“[Debt consolidation loan] is a good option for someone who doesn’t have fabulous credit, âHarzog explained,â You might get a lower interest rate than you pay on high interest credit card debt. “
She recommends balance transfer credit cards for those with an âexcellentâ credit history because a 0% APR allows you to pay off debt quickly and save interest.
âIf you could practice mindful spending, stay on a budget and don’t use your balance transfer card for new purchases because that’s where people have problems,â Harzog warned. “They use that card and then they just increase their debt. So you have to have a lot of self-discipline to make it work for you.”
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The number of Americans facing unsecured debt is up 42% from last year’s survey, Harzog noted.
âDuring the pandemic, everyone really cut their spending,â Harzog explained. “There were limited spending opportunities and now people are spending again.”
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