>>> AMERICANS ARE RACKING UP UNPRECEDENTED AMOUNTS OF CREDIT CARD DEBT. >> SOME ESTIMATES SHOW THAT WE COLLECTIVELY OWE $1.6 TRILLION. ACCORDING TO WALLET HUB, THE AVERAGE CHICAGO HOUSEHOLD OWES MORE THAN $13,000, AND THAT IS A STAGGERING FIGURE WHEN YOU CONSIDER THAT SOME OF THESE CREDIT CARD COMPANIES CHARGE AS MUCH AS 30% INTEREST ON OUTSTANDING PAYMENTS. EXIT JOINING US NOW TO SHARE SOME ADVICE FOR AMERICANS STRUGGLING WITH CREDIT CARD DEBT IS ASHLEY WALTON, CERTIFIED FINANCIAL PLANNER WITH THE GOLDSTONE FINANCIAL GROUP. ASHLEY, THANK YOU FOR JOINING US. FIRST THING IS FIRST, WHY IS CREDIT CARD DEBT RISING? >> THANKS FOR HAVING ME. I THINK THAT WE ALL HAVE FELT THE INFLATION INCREASING THE COST OF LIVING , AND UNFORTUNATELY, THAT MEANS THAT MORE AND MORE PEOPLE ARE STRUGGLING TO PAY FOR EVERYDAY EXPENSES, WHICH OFTENTIMES LEADS TO PEOPLE RELYING ON CREDIT CARDS JUST TO MAKE ENDS MEET.

AND THEN WE PAIR THAT WITH HIGHER INTEREST RATES AND THAT IS JUST MAKING IT EVEN HARDER FOR PEOPLE TO PAY OFF THEIR BALANCES. THE FEDERAL RESERVE HAS YET TO CUT INTEREST RATES THIS YEAR, WHICH MEANS MANY CREDIT CARD COMPANIES ARE STILL CHARGING SUCH HIGH RATES, SOMETIMES IT IS EVEN AS HIGH AS 25% APR. >> LET'S SAY WE DO HAVE A MOUNTAIN TO CLIMB BECAUSE OF ALL THOSE FACTORS, WHAT ARE YOUR TIPS ON HOW TO START CHIPPING AWAY AT THAT CREDIT CARD DEBT? >> SO, FIRST YOU HAVE TO PRIORITIZE DEBT REPAYMENT. IF YOU DON'T HAVE A BUDGET, YOU HAVE TO MAKE ONE TO HELP YOU STAY ORGANIZED. BECAUSE IF YOU WANT TO PAY OFF YOUR CREDIT CARD BALANCES, YOU WILL DO BETTER IF YOU HAVE AN ACTUAL WRITTEN BUDGET THAT PRIORITIZES THAT DEBT OR PAYMENT.

ONE THING YOU CAN DO IS TRY TO LOWER YOUR EVERYDAY EXPENSES IF YOU CAN, SO THEN WILL HAVE MORE MONEY TO PUT TOWARDS YOUR DEBT. I THINK WE ALL PROBABLY HAVE AT LEAST A SUBSCRIPTION OR TWO THAT WE CAN CANCEL, BUT ALSO, NOW THAT GROCERY BILLS ARE SO HIGH, IF YOU CAN FIND A WAY TO LOWER YOUR GROCERY BILL BY BUYING OFFBRAND ITEMS OR THINGS LIKE THAT, BUT THE MOST IMPORTANT PART OF THE BUDGET IS STICKING TO IT IN ORDER TO AVOID OVERSPENDING, BECAUSE OTHERWISE, YOU'RE JUST GOING TO KEEP INCREASING THOSE BALANCES.

>> SO, WHAT SHOULD WE DO NEXT? >> FIRST, PUT THE CARDS AWAY, AVOID ACCUMULATING MORE DEBT AS YOU PAY OFF WHAT YOU OWE. THAT IS SOMETHING THAT WE SEE SO OFTEN WEAR ONE BALANCE WILL GO DOWN, AND THEN ANOTHER BALANCE WILL GO RIGHT BACK UP. SO FIRST, IF YOU CAN, AS SOON AS A CARD GETS TO ZERO, SET UP AUTO PAYMENTS, SO IT WILL PAY OFF THE FULL BALANCE EACH MONTH, AND THAT WILL KEEP THAT ONE TAKEN CARE OF, RIGHT? SOME PEOPLE MIGHT THINK THEY ACTUALLY HAVE TO SEPARATE THEMSELVES FROM USING A CREDIT CARD ALTOGETHER, AND IF THAT IS THE CASE, YOU'RE GOING TO WANT TO STICK WITH PAYING FOR THINGS WITH CASH IF YOU CAN.

BUT WITH EVERYTHING ONLINE NOW, IT IS VERY HARD TO GET AWAY WITH BUYING EVERYTHING WITH CASH, SO ANOTHER IDEA IS TO TAKE OFF YOUR SAVED CARD INFORMATION. I KNOW IF I HAVE TO GET UP AND GET A PHYSICAL CREDIT CARD, I AM MUCH LESS LIKELY TO IMPULSE .