Personal debt

Struggling With Credit Card Debt? Here's What You Should Do

NBC 7 Responds talked with financial experts to see how people can pay off credit card debt amid rising prices.

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Debt across the country hit a record $16 trillion this summer. People are buying more because of higher prices, and that means credit card debt is also going up.

If you're hoping to cut down on your debt, the higher prices make it challenging. That's why financial experts say you need to know exactly how much you're spending.

"First, make sure you don't accumulate any more debt," said Felipe Arevalo with the San Diego Financial Literary Center. "Setting up a budget is going to be key so you don't have to rely on those credit cards, you don't have to rely on that credit limit."

Cutting out expenses is the next step. Going out to eat or ordering delivery can quickly add up, so try to cook at home more often. Then look at what services or memberships you have you can live without.

"Second, hide that credit card from yourself," said Arevalo. "Just discontinue using it."

If you have debts spread across several credit cards or accounts, you might have considered consolidating what you owe into one loan. However, higher interest rates from the Federal Reserve might mean you end up paying more than you already owe.

"Sometimes you can transfer a balance or consolidate to another loan," said Arevalo. "But be careful because I've seen people consolidate and increase their APR."

Finally, if you can pay more than the monthly minimum payment, you should. That will help by reducing how much you end up paying in interest over the life of the debt or loan.

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