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It seems like it’s easier than ever these days to charge your credit card. However, those purchases and interest add up quickly, and mounting credit card debt can be crippling. According to the latest quarterly Household Debt and Credit Report from the Federal Reserve, the total amount of debt in the U.S. recently topped $1.2 trillion, the latest record-high level. The typical cardholder is carrying nearly $8,000 in unpaid credit card balances.
Roger Reynolds, CEO of Reynolds Financial Group in Greenwood Village, says now is the perfect time for Coloradans to tackle that debt.
“September is a great month to do so. We’re getting back into school, our lives are busy but we can focus on our financial matters as well,” said Reynolds.
Reynolds says there are a variety of programs and strategies to help you get back on track. Here are a few:
“The first option is debt consolidation loans. You have to have basic credit a 650 or higher, this could be from your bank or credit union where they take all your different debts and consolidate it into one. The advantage of that is you’ve got one payment, instead of 5-10 or more. The goal is also to lower your monthly payments and hopefully your interest rate as well.”
Consolidation simplifies your life and gets you out of debt sooner. And if that doesn’t work, Reynolds advises another option.
“You can look at debt forgiveness. It’s where, through negotiation, you can potentially lower how much you owe. It could be 30%, 50%, sometimes even more. This can be done by yourself or by other companies that help you. You also have to have a certain amount of debt and prove a hardship in some form … a loss of job, medical issues, or other changes in your income.”
Additionally, you could look into a credit card forbearance or hardship program.
That’s where credit card issuers offer internal programs to pause or reduce payments temporarily for borrowers facing financial difficulties.
Just know that no matter what, you always have choices.
“You have to look at all the factors and make sure it’s right for you,” said Reynolds.
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Mekialaya White
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