Controlling your costs: How to manage credit card debt

CHARLOTTE — More people across the United States are dealing with credit card debt than ever before.

A new study says Americans paid about $25 billion more in credit card interest and fees last year than in 2021. Part of the reason it is so high is because of inflation. According to WalletHub, credit card interest fees are almost at 21%. It’s the highest it’s been since the Federal Reserve started tracking the number in 1994.

Action 9′s Jason Stoogenke has advice for chipping away at the debt. He says credit cards can be good if you use them wisely. If you have a lot of debt, Stoogenke says you shouldn’t be afraid to negotiate a better rate with your credit card company.

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LendingTree recently did a survey and found 75% of cardholders who asked for a lower interest rate got one.

“With success rates that are that high, it’s clear that it’s not just folks with an 800 credit score and a long track record who are getting their way,” Matt Schulz of LendingTree said.

Schulz says you should use other offers as leverage and if you have been through a tough time, let the lender know. Above all, be kind when negotiating.

“That credit card issuer is going to be willing to work with you because they are not going to want to lose a good customer over a few percentage points,” Schulz said.

You should also consider a balance transfer credit card.

“A balance transfer card is basically when you open a new credit card and you transfer existing debt over to this new card,” Ted Rossman of Bankrate said. “And what you’re looking for is a lengthy 0% promotion. The longest ones right now are up to 21 months.”

You should be aware of the transfer fee and what the interest rate will be after the promotional period ends.

Lastly, if you have bad credit, nonprofit credit counseling can be a great option.

“Agencies like Money Management International and GreenPath, they can negotiate better terms with your creditors,” Rossman said “And you can probably get something like a 7[%] or 8% rate over for five years.”

The FTC says you should be aware of “companies guaranteeing -- for a fee -- to get you a lower credit card interest rate and promising to save you thousands of dollars. “These scammy debt relief companies will tell you just about anything to get your money.”

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