Take Charge of Your Credit Debt – Michigan Chronicle
- January 22, 2021
- By: Greenpath Financial Wellness
As part of GreenPath’s Millennial Money Series, the Michigan Chronicle looks at ways to minimize the impact that financial struggles have on our credit health.
A recent study has shown a 4% increase in U.S. adults carrying credit card debt. About 23% of existing credit cardholders have added to their current debt due to the pandemic. COVID-19 is directly impacting consumers’ ability to manage credit card debt.
Healthy credit usage is paying more than the minimum payment each month and charging only what you can afford. But in 2021, “healthy” might not be feasible. If finances are tight and you need to increase your credit usage to cover your bills and essentials from month to month, do so— don’t stop there. There are simple yet impactful steps that we can take to minimize the impact that financial struggles have on our credit health, both during and after the pandemic.
LEARN MORE ABOUT MILLENNIAL MONEY
GreenPath has partnered with the Michigan Chronicle for a six-installment Millennial Money series designed to help millennials become better stewards of their finances.
Options for Managing Credit Card Debt
The Michigan Chronicle offered some tips for those looking to manage and pay down their debt.
- Reach out to a non-profit credit counseling agency, like GreenPath. They can work with you to contact your creditors and ensure you understand your options.
- Reach out to your creditors to discuss solutions. When speaking with them, be honest and forthcoming.
- Consider a balance transfer. A balance transfer offers a chance to move your debt from one credit card company to another, often with a promotional interest rate of 0%, potentially enabling you to pay the debt sooner.
Have Questions About Managing Debt?
GreenPath’s NFCC-certified debt counselors can walk you through your options when managing your household finances, including figuring out how to manage debt. 91% of people served by GreenPath feel better prepared to handle their finances. Together let’s make a plan for managing your full financial picture to support your goals.