PALM BEACH COUNTY, Fla. — This month, WPTV's Matt Sczesny sought your thoughts on the challenges surrounding credit card debt, and we're making it a priority to address your questions.
Higher interest rates and inflation seem to be driving more and more people to reach for credit cards and sink more in debt. Recent estimates indicate that total credit card debt in the United States has reached approximately $1.2 trillion this year.
WATCH BELOW: Rising credit card debt and ways to lower it
"The average credit card balance is $6,600 according to Transunion," Ted Rossman, at Bankrate, said.
Rossman said about half of Americans managed to pay off their credit card bills monthly, while the other half carry balances.
"A car repair, groceries, these are the things that get people in credit card debt and it's hard to break the cycle, because the average interest rate is 20%," Rossman said.
The burden of rising debt can have serious consequences for mental health, potentially contributing to anxiety, depression, and sleep disorders.
"Financial stress is a warning sign that we need to take seriously," said psychotherapist Dr. Jennifer McManus.
Paying off credit card debt can be a daunting challenge.
"The problem with minimum payments, it's a game," said Howard Dvorkin of Debt.com in Fort Lauderdale. "75% of your minimum payment is typically going to pay and service interest, not principal."
Debt.com specializes in offering relief solutions.
WATCH BELOW: Living with credit card debt and ways to manage it
"In my career over the last 32 years, I have helped 13 million people get out of debt," Dvorkin said.
If you want to try to go it alone, the first step, experts say, is to make a list of your debts, and consider contacting some creditors.
"If you call there's so many options," said financial coach Dr. Annie Cole. "For example, some credit cards can give you a temporary pause on payments or a temporary pause on interest through a hardship, so that's one option."
Two popular strategies for paying off debt are the avalanche and snowball methods.
"Mathematically, it makes more sense to prioritize the highest interest rate," said Rossman, referring to the avalanche method.
However, many individuals find motivation in the snowball method, where they focus on paying off smaller balances first.
"It does feel like you're making progress when you knock out the smaller amount first, knock out the store card with the $500 balance, maybe you're more motivated."
In an environment where financial pressures are mounting, understanding these strategies is crucial for regaining control over personal finances.
Tune in to WPTV today from 4 p.m. to 6:30 p.m. for our coverage of navigating credit card debt as we seek solutions for you.
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