If given the choice, it’s likely that people would rather wrestle a bear than sit down and come up with a plan to finally tackle their credit card debt. According to a 2020 report from CreditCards.com, nearly half (47%) of Americans are now carrying some form of credit card debt. Millennials, in particular, have had a tough time tackling their debt, as they face hurdles like unemployment, lack of savings, and two recessions that have taken place during their career spans.
Before tackling your debt, you must first sit down and fully assess your financial situation. According to Credit Karma, you can accomplish this by creating a list of everything you owe, which should include all of your credit card debt and monthly bills. This list of the debts you owe should include the balance and annual percentage rate, or the price you’re charged to borrow the money, for each and every credit card. After making that list, you will be able to compare your debt and monthly expenses — like rent, a mortgage, car payments, and grocery bills — with your income. This will allow you to figure out how much money you can allocate to paying off your debts each month.
Once you know exactly what you owe, you can try a payoff strategy that works for you.