Yahoo Finance I’m a Millennial Who Paid Off $20K in Credit Card Debt — Here’s My Secret
Credit card debt is some of the highest-interest personal debt you can take on. Today, a record number of Americans find themselves in credit card debt: the Federal Reserve Bank of New York reported as of Q1 2024, American credit card balances totaled $1.12 trillion and 9% of delinquencies were a result of credit card debt.
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It can be easier to spend more on your credit cards than you have in cash in your checking account, resulting in accrued credit card debt. If you’re not careful and you pay less than the full balance on your credit card each month, you can bury yourself in debt pretty quickly.
Fortunately, there’s a way out.
CNBC spoke with 40-year-old millennial Shonnita Leslie who figured out how to get out of $20,000 worth of credit card debt in six years.
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Working With a Credit Counseling Agency Is Key
Leslie explained to CNBC that she reached out for help to figure out how to dig herself out of debt. She consulted with a credit counseling agency that specializes in debt management to do just that.
Her debt was spread across multiple cards with varying minimum payments and interest rates. To simplify her debt management, the agency helped Leslie consolidate her debt into manageable $250 monthly payments with a lower monthly interest rate.
“If you have a lower credit score (below, say, 670) or a lower income or a lot of debt (more than five or six thousand dollars in credit card debt), or even if you just want a helping hand, this [a credit counseling agency] might be your best option,” she recently explained to CNBC Make It.
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If you’re stuck in credit card debt and you’re looking for help, consider a credit counseling agency like Leslie did and create a plan to get out of debt as soon as possible.
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This article originally appeared on GOBankingRates.com: I’m a Millennial Who Paid Off $20K in Credit Card Debt — Here’s My Secret
