WASHINGTON — If your credit card debt just keeps growing, you’re not alone.
A new Bankrate survey shows more people are carrying monthly balances and they’re in debt for longer. It reveals about 56 million people with monthly balances have been in debt for at least a year.
“Contrary to popular belief, it’s usually something practical that gets you into credit card debt. it’s not usually a vacation or a shopping spree,” said Ted Rossman, senior industry analyst at Bankrate.
This comes as outstanding credit card balances nationwide surpass more than $1 trillion, according to the Federal Reserve Bank of New York.
Rossman said one of the most common reasons people go into debt is an emergency. This includes medical bills as well as car and home repairs.
He adds because of higher prices overall, more people are relying on credit cards to pay for day-to-day expenses.
The survey shows Gen X cardholders are also more likely to have debt.
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“They might be caring for elderly parents at the same time, they’re still caring for their own kids, maybe putting them through college and these are expensive years,” said Rossman.
These findings also shows less than half of cardholders say they have a plan for paying it off.
But Rossman says there are some solutions like reviewing all your expenses.
“Do you have overlapping streaming subscriptions? are there free trials that have turned into paid subscriptions without your knowledge? Could you cut back on Dining Out for a while?,” said Rossman.
He also recommends getting a 0% balance transfer card.
“Take your existing high cost debt, move it over to a new card that has a 0% promotion lasting as long as 21 months that could really help you out,” said Rossman.
If you have a lot of debt or a low credit score, experts also suggest working with a reputable nonprofit credit counseling agency like GreenPath Financial Wellness and Money Management International.
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