LAS VEGAS (KTNV) — Americans are piling on credit card debt. Balances are up 48% from just three years ago.
Now we know the Federal Reserve is eyeing a rate cut in September, but experts say it's going to take more to really get credit card debt under control.
Here's another eye-opening number for you: Americans owe more than $1.1 trillion in credit card debt, and it's a new record high.
Local money coach Lisa Chastain told me that nearly all of her clients are struggling with this issue.
If somebody's credit card is maxed out, how can I start? What is a good tip or suggestion that you would say? What's a good strategy for them to approach the debt?
"Start paying your credit cards and pay the minimums only and get a handle on your cash flow," she said. "Get a handle on what you're spending first. Spending isn't all the reason that you're in debt potentially, but it could be a big reason why. Move your credit cards down to minimums. Pay the minimums, ease up for a minute on trying to get out of debt, and then put a longer strategy in place."
To tackle credit card debt, Chastain suggests keeping your credit card usage below 30% of your card's limit.
She also suggests reviewing your spending by checking the last 90 days of statements, reach out to your credit card companies to negotiate lower interest rates, and consider moving your high-interest debt to cards with lower rates or 0% interest offers.
