Vincenza Vicari-Bentley, AFC
Empowering Financial Wellness Program Coordinator
You want to get out of credit card debt but inflation, unplanned purchases and emergencies keep busting your budget? Let me tell you about the power of paying just a little bit extra on one of your credit cards this month to break that cycle of debt accumulation.
The average Utahn has $4,900 owed on credit cards paying an average interest rate of 18.99%. If you’re only making minimum payments (and not adding to the balance) it would take you over 17 years to pay off and that $4,900 would grow to almost $10,000! By making one extra payment every month of $20.00, you would save over $8,000 in interest and it would only take you a little over 3 years to pay off your debt!
Hands down developing and living by a household budget can help you be prepared for all spending including items like car repairs, a trip to the dentist, and more. A solid budget takes into consideration your financial goals and priorities and when you track actual spending down to the penny, you can pinpoint where you have unnecessary spending. Is it a monthly subscription you aren’t really using? Is it going out to eat? When you have a budget, you will be empowered with looking at your actual spending and most likely will find additional dollars to help you pay down your credit card debt. Even if you find an extra $20 per month, and apply that to your debt, you can expedite the repayment process.
Don't discount small amounts you can pay towards your credit card debt, they can make a huge difference! Bottom line: Budgets are a win-win because they help us stay in control and can provide some stability as well as uncover money that could be freed-up to pay down your debt even faster. Check out www.powerpay.org to see more about the magic of making extra debt payments.
Take one of our free webinars and get that extra support to get you started on making your own budget and realizing your potential to pay off those credit cards!
Register at www.finance.usu.edu/efw.
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