A Bankrate poll shows that 42% of U.S. adults with credit card debt have increased those balances since the Covid-19 pandemic started. The survey was conducted in early September of 2021 and included 2,400 adults, 1,297 of whom had credit card debt already.
Of those polled, 47% said that the pandemic was the direct reason for the increase in their credit card debt.
The survey also found that 54% of those with credit card debt carry balances from month to month, and 50% of those people have been in credit card debt for more than a year.
Covid-19’s Impact on Credit Card Debt
In a different survey conducted by LendingTree, of 1,249 customers in March of 2022, 48% of those surveyed mentioned inflation as another contributing factor in the increase in credit card debt.
Over a quarter of users paid their credit card bills late at least once during the pandemic, with parents with young children, women, millennials, and those earning less than $35,000 a year facing more late payments than others.
The perfect storm of the Covid-19 pandemic and inflation hitting in the later part of the now 27-month period has set back many Americans.
How to Manage Credit Card Debt
As things start to trend in the direction of “back to normal”, here are some tips to tackling your credit card debt:
- Write Everything Out – Keeping all of the money owed in one place makes it easier for you to plan out what needs to be addressed first, how to manage your money appropriately, and be more organized in general
- Find Which Method Works for You – There are many ways to attack credit card debt, so it’s important to find which works for you. Wells Fargo describes the “Avalanche Method” (prioritizing the debts with the highest interest rates first) versus the “Snowball Method” (eliminating the balances first)
- Don’t Get “Rewards Hungry” – If you already owe money on a credit card, you shouldn’t continue to use the card repeatedly in order to gain rewards from the card until the debt is brought to a more manageable number or eliminated completely
- Ask for Help – There are plenty of resources available to reach out and chat with someone about how to best approach credit card debt. There is also no shame in asking for help from someone you trust if they have knowledge as to how nest to minimize or eliminate credit card debt
Minimize Debt, Maximize Income
A good variety of companies in any industry now offer a great way to track your income while using their apps. ShearShare is no different. If you are a host, your main page will include your earnings report while using the app. This makes it easier to access important information like how much of your income through the app should be dedicated to debt payoffs.
The bottom line? It is possible to get yourself out of credit card debt. COVID-19 has affected us all but if you follow these steps, you’ll be well on your way to living a debt-free life! Do you have any additional tips? Leave a comment and share them with the #ShearShareCommunity!
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