LAS VEGAS (KTNV) — From gas to groceries, we're all feeling the effects of inflation. And with fears of a recession looming, things could get worse before they get better.
It's a scary time, especially if you're living paycheck to paycheck. 13 Action News anchor Tricia Kean speaks with a local expert about finding financial peace.
"As I'm sure is a story with a lot of people, credit card debt started to kind of creep up as I was trying to manage my expenses and other things that kind of came up," says Jarrett Clark.
CREDIT CARD DEBT
He says he realized he needed help after racking up $23,000 in credit card debt.
"I really started kind of feeling; this is not sustainable," says Jarrett.
Jarrett says he was struggling to pay off the balance on nine different credit cards and spending way too much on just interest.
So, he reached out to Money Management International. The non-profit credit counseling service says far too many people get into financial trouble because they simply aren't budgeting.
"So, looking at income, assets, creditors, monthly expenses," says Thomas Nitzsche with Money Management.
They helped Jarrett put together a monthly budget of how much he earns and how much he spends. Then they negotiated with his credit card companies to lower his high interest rates.
"We get them to fix the monthly payment and fix the interest rate at a lower amount. The average is about 6.4%," says Nitzsche.
Money Management says it's important to also cut expenses where possible.
CUT EXPENSES
For example, avoid extra medical debt by taking full advantage of healthcare benefits. In some cases, you may be eligible for charity care or financial aid to help cover expenses.
"About 20% of the clients that seek counseling from us indicate that medical expenses were their primary reason for contacting us, which is pretty significant. One in five," says Nitzsche.
Another expense worth reviewing is TV subscriptions. Many Americans have cut out cable but are now paying fees for multiple streaming services It may be time to eliminate one or two of those accounts.
"Because we're not checking our credit card or debit card statements like we should, those charges can slip by. So there are even apps now that can help you organize your subscriptions and identify which ones you have and which ones you may want to get rid of," says Nitzsche.
Then there's fees for those popular food delivery apps. Closing your account or just eating out less can save you a significant amount.
In the end, Money Management says they can make a difference.
SOLUTIONS
"There are solutions. It's just that you need to educate yourself as to what they are. You can lean on the experience of our counselors to help you get through this time," says Nitzsche.
Jarrett not only recommends reaching out for help, but he also says in this economy, you can't afford not to.
"If you are living paycheck to paycheck, now is the time to reach out... Do it now. Don't wait. You're just going to end up paying more in interest and not get out of your debt," says Jarrett.
If you need help getting your finances under control, try working with a non-profit credit counseling service. Debt settlement and debt consolidation loan services can be costly and hurt your credit score.
