High inflation, interest rates increase credit card debt in NH

High inflation, coupled with historic interest rate hikes, has some New Hampshire residents relying on credit cards to get by. According to Wallet Hub, the average New Hampshire household has credit card debt of over $8,400. will have to deal with the increase in the cost of heating. But experts say there are ways to avoid racking up costly credit card debt. The short answer is to spend less or earn more. Another option is to consider a personal loan from a bank. Financial experts have said that an interest rate of 5% is a bargain compared to the 18% or more charged by credit cards. Nonprofit credit counseling agencies can help you analyze your credit situation and budget. Debt consolidation services are chargeable and often promise clients to be debt free within five years. If not, some experts advise considering getting another credit card. Some cards offer interest-free balance transfers, which could mean significant savings. But there are risks to keep in mind. “You’re not paying off your debts,” said Brian Brown of Greenpath Financial Wellness. “You take on new debt to pay off existing debt with the transfer. And most of the time, these balance transfers come with a fee.” The process always starts with a thorough budget review. track record, being able to track your monthly income, your expenses,” Brown said. “Actively monitor what’s coming in and what’s going out. Understanding the prioritization of these expenses, finding ways to potentially reduce them.” According to Wallet Hub, Granite Staters’ household credit card debt has increased by an average of $576 over the past year.

High inflation, coupled with historic interest rate hikes, has some New Hampshire residents relying on credit cards to get by.

According to Wallet Hub, the average New Hampshire household has over $8,400 in credit card debt.

With the onset of winter, Granite Staters will face rising heating costs. But experts say there are ways to avoid racking up costly credit card debt.

The short answer is to spend less or earn more. Another option is to consider a personal loan from a bank. Financial experts said the 5% interest is a bargain compared to the 18% or more charged by credit cards.

Nonprofit credit counseling agencies can help you analyze your credit situation and budget. Debt consolidation services are chargeable and often promise clients to be debt free within five years.

If those aren’t options, some experts advise considering getting another credit card. Some cards offer interest-free balance transfers, which could mean significant savings. But there are risks to keep in mind.

“You’re not paying off your debts,” said Brian Brown of Greenpath Financial Wellness. “You take on new debt to pay off existing debt with the transfer. And most of the time, these balance transfers come with a fee.”

The process always begins with a thorough review of the budget.

“Think of the household budget as a roadmap, able to track your monthly income, your expenses,” Brown said. “Actively monitor what comes in and what goes out. Understand the prioritization of these expenses, find ways to potentially reduce them.”

According to Wallet Hub, Granite Staters’ household credit card debt has increased by an average of $576 over the past year.

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