That's no secret. The pandemic and inflation have hit our wallets, and as a result, Americans are charging more to their credit cards. Billions more. But what does that mean for our economy? And what's the best way to get out of debt? Treleven Sarah Makowitz has the answers from experts. Pandemic restrictions have eased, but a lot of the inflated prices that came as a result have stuck around, pushing Americans to swipe, swipe and swipe again. All of this has led to a new record high of nearly $1 trillion in credit card debt nationwide. That's rising by over $60 billion in the last quarter of 2022.
But how did we get here? Economists and financial planners have some ideas. On the fourth quarter of last year, it finally surpassed the pre pandemic. Americans are paying more for everything, and they've tapped and in many cases now depleted their savings. They feel like they have no place to turn but credit card swiping the credit card to pay for life. So we know that our plastic is carrying more. But what does all this debt mean for our economy? Interest rates are rising and that that's going to affect business investment and consumer spending decisions. But so far, consumers still seem enthusiastic about spending and. And buying things and willing to run up their credit card debt. If you're someone battling this debt right now, eventually that Bill is going to come in. But Jen will says you might want to be careful before you open up another credit card for more spending.
The best advice I can give is never use a credit card to pay for a want. The average interest rate right now, we're told, is over 19%. Find those introductory offers, those 0% introductory offers where you can move balances for a short period of time. But don't do it unless you have a plan to snowball and really attack that debt. As for what's next, there's no guarantee, but Gen. Wealth advises you plan for what you can control. What matters most is not the economy, but your economy. And figuring out your budgets is more important than what's going on in 2023 in the US economy. And while we are seeing inflation begin to slow down, economists say the high prices aren't going anywhere anytime soon.
Reporting. I'm Sarah horback lowitz. Sarah, thank you now. Well, overall, FICO credit scores continue to trend up through 2021. According to the data company Experian, many scores in Southern states, including Arkansas, are worse than the national average..
DOES NOT LIVE BEYOND HER MEANS AND DOESN'T CARRY ANY CREDIT CARD DEBT. >> I LEARNED TO RESPECT MONEY WITH A CREDIT CARD. THEY CHARGE YOU A LOT IF I DON'T PAY AT THE END OF THE MONTH. >> PAULA WENT YEARS WITHOUT A CREDIT CARD. >> WE SAID NONE UNTIL I GOT MARRIED. THEN WE SAID WE WILL GET A CREDIT CARD TO BUY OUR TICKET TO SAN FRANCISCO, WE MOVED TO AUSTRALIA.
>> THOSE ARE SUCCESS STORIES. OTHERS ARE NOT SO SUCCESSFUL. KEEPING TRACK OF CREDIT CARD USE GOOD AND BAD IS TED ROSSMAN'S JOB. A SENIOR INDUSTRY ANALYST WITH BANK RATE.COM. >> INTEREST RATES, THE AVERAGE CREDIT CARD CHARGES OVER 20%. THE MINIMUM PAYMENT MATH IS BRUTAL. IF YOU HAVE THE AVERAGE CREDIT CARD BALANCE AND YOU MAKE MINIMUM PAYMENTS, YOU WILL BE IN DEBT FOR MORE THAN 17 YEARS. >> AND FOR SOME, THAT IS A BEST CASE SCENARIO. IF YOU HAVE BAD CREDIT, YOUR RATE IS LIKELY AROUND 30%. >> YOU HAVE CREDIT CARD DEBT? >> NO. >> SAN FRANCISCO'S LAYLA DECKER USED CREDIT CARD DEBT STRATEGICALLY TO GET HER EDUCATION. SHE WAS JUST AS STRATEGIC ONE PAYING OFF HER DEBT. >> HOW DID YOU GET OUT OF IT? >> WORK EXTRA, TAKE ON AN EXTRA JOB DURING COLLEGE. >> SMART. SHE SAYS NEARLY HALF OF US CAN LEARN FROM IT. >> WE FOUND 47 PERCENT OF CREDIT CARDHOLDERS CARRY DEBT FROM MONTH-TO-MONTH.
SWIPING A CREDIT CARD IS EASY TO DO — WHETHER ITS FOR EVERY DAY ITEMS OR MAJOR PURCHASES. BUT IF YOU'VE STARTED TO ACCUMULATE SOME DEBT — 12 NEWS CONSUMER REPORTER SARAH GUERNELLI SPOKE WITH AN EXPERT ABOUT WHAT YOU SHOULD DO. SARAH? (SARAH) THE AVERAGE PERSON HAS ABOUT 4 CREDIT CARDS. BUT ITS IMPORTANT TO BE MINDFUL HOW TO YOU MANAGE THE DEBT. (SARAH) MORE AND MORE PEOPLE ARE TURNING TO CREDIT CARDS. (Ted Rossman, Bank Rate) "we have found that about 60 percent of people have had credit card debt for almost a year thats up 10 percentage points year over year" TED ROSSMAN FROM BANK RATE SAYS IT'S EASY TO RACK UP A LARGE BALANCE.
(Ted Rossman, Bank Rate) "some people say credit cards are like power tools they can be very useful or very dangerous" HE RECOMMENDS FOR PEOPLE TO TRANSFER THE BALANCE ON A CARD WITH 0 PERCENT INTEREST FOR A CERTAIN AMOUNT OF MONTHS AND THEN DON'T USE IT. (Ted Rossman, Bank Rate) "dont add new purchases divide what you owe by the number of months in your 0 percent term and try to stick with that" THAT — COULD SAVE YOU HUNDREDS TO THOUSANDS OF DOLLARS IN INTEREST. HE SAYS THERE ARE A FEW CARDS RIGHT NOW THAT WILL OFFER THAT. (Ted Rossman, Bank Rate) "cards that offer no interest is wells fargo reflect, bank america card city simplicity and city diamond preferred" HE ALSO SAYS – ONCE YOU MOVE YOUR BALANCE OVER — DON'T CLOSE THE CREDIT CARD, (Ted Rossman, Bank Rate) "I would say your credit score could suffer in general if you have more than 5 credit loans in a year and that could include a mortgage loan, card loan and things like that" (SARAH) HE ALSO RECOMMENDS — IF YOU ARE GOING TO MAKE A BIG PURCHASE — LOOK FOR A CREDIT CARD THAT WILL OFFER SOME TYPE OF REWARDS.
WE'RE LIVE IN LONG BEACH WILL SEND IT BACK TO YOU. HOLLY WHAT. >> ALL RIGHT TIME NOW FOR 2 OR CONFIDENTIAL WITH A FLIGHT FOOTBALL LEGEND BACK IN THE DAY YEARS DUE ONCE UPON A TIME HUGE JOBS REPORT THAT BIG BIG NEWS TODAY NOW LOOK WE HAVE BEEN EXPECTING LESS THAN 200,000 JOBS WERE CREATED LAST MONTH IN FACT THE TOTAL CAME IN IT 517,000 THAT'S MORE THAN TWICE WHAT WAS EXPECTED AND IS IN FACT THE BEST SHOWING THAT WE HAVE SEEN SINCE LAST JULY SOME OF THE OTHER TOP LINE NUMBERS, THE UNEMPLOYMENT RATE IS NOW DOWN TO 3.4% THAT IS THE LOWEST LEVEL WE'VE SEEN SINCE 1969. >> AND WAGE GROWTH IS NOW AT 4.4% WHICH IS ADMITTEDLY BELOW THE INFLATION RATE BUT STILL PRETTY GOOD YOU STORE ALL THAT TOGETHER AND YOU GET A JOBS MARKET THAT IS VIBRANT AND HEALTHY AND A CLEAR POLITICAL WIN FOR PRESIDENT BIDEN.
HOWEVER FOR FED CHIEF JEROME POWELL, THIS IS A HUGE HEADACHE YOU CAN JUST PICTURE HIM SITTING BY HIS DESTINY THINKING HEY I'VE THROWN 8 RATE HIKES HAVE THIS PROBLEM I CAN MAKE INFLATION GO CAN'T MAKE THE ECONOMY COOL OFF WHAT'S IT GOING TO TAKE AND THAT IS PRECISELY WHY STOCKS ARE DOWN TODAY. IT LOOKS LIKE EVEN THOUGH TRADERS ARE EMBRACING THE FACT THAT THE JOBS MARKET IS GOOD WHAT'S NOT TO LIKE ABOUT THAT IN REALITY FROM A MARKET PERSPECTIVE, THIS ALMOST CERTAINLY MEANS WE'LL SEE AT LEAST 2 MORE QUARTER POINT RATE HIKES THIS YEAR POSSIBLY RATE HIKES FOR THE REMAINDER OF THE YEAR AND THERE HAVE BEEN SOME HOSTS ON WALL STREET THAT WE WOULD SEE ACTUAL RATE CUTS LATER IN THE YEAR TO TRY TO BOOST THE ECONOMY UP AGAIN AFTER A POSSIBLE RECESSION.
NOW IT LOOKS LIKE THOSE RATE CUTS OFF THE TABLE FOR THIS YEAR UNTIL TRADERS FIGURE OUT WHERE WE'RE HEADING YOU CAN EXPECT A WHOLE LOT OF TURBULENCE LIKE WE'RE SEEING RIGHT ALL RIGHT THE RECENT INTEREST RATE HIKE YOU'VE GOT SOME CREDIT CARDS WITH SOME. >> BIG FELLA SAYS YOU'RE IN TROUBLE ABSOLUTELY TODAY'S JOBS REPORT UNDERLINES THE FACT THAT CONSUMER SPENDING HAS BEEN A MAJOR ELEMENT FOR THE FOR THE ECONOMY, IT'S KEEPING BUSINESS IS GOING WELL AND THEY IN TURN ARE HIRING ENHANCED THE JOBS REPORT BUT A NEW REPORT OUT FROM CREDIT AGENCY CREDIT TRANS-UNION FINDS THAT CREDIT CARD DEBT IN THE 4TH QUARTER WAS UP BY 18.5% FROM A YEAR EARLIER TO A RECORD 931 BILLION DOLLARS, THE AVERAGE BALANCE NOW RUNNING JUST NORTH OF 5,800 BUCKS.
THAT'S REALLY TOUGH STUFF BECAUSE THE HIGHER YOU CARRY A BALANCE OBVIOUSLY THE DEEPER INTO THE HOLE YOU ARE GETTING NOW LOOK WE ALL KNOW THAT WITH CONSUMER PRICES AT A 40 YEAR HIGH MANY FAMILIES ARE GETTING BY PAYCHECK TO PAYCHECK AND YOU MIGHT HAVE TO PUT THINGS ON PLASTIC JUST TO PUT FOOD ON THE TABLE BUT THIS IS A REAL PROBLEM THINK OF DEBT AS LIKE HAVING A CHRONIC DISEASE IF YOU DON'T TREAT IT IT JUST GETS WORSE. SO THAT'S WHY MY ADVICE TO ANYONE WHO'S CARRYING A BALANCE RIGHT NOW.
IF YOU CAN PAY IT OFF GRAIN IF YOU CAN'T PAY IT OFF AT LEAST TRY TO PAY IT DOWN AND IF YOU THAT'S HARD CONTACT YOUR BANK CONTACT YOUR LENDER AND SEE IF YOU CAN ARRANGE SOME SORT OF PAYMENT PLAN AT A LOWER INTEREST RATE AND IF THAT'S NOT WORKING FOR YOU THINK ABOUT CONTACTING A CREDIT COUNSELOR TO SEE WHAT HE OR SHE HAS TO SAY ABOUT GETTING YOUR SPENDING UNDER CONTROL GREAT TEMPS AND THEN WHAT'S GOING ON WITH NORDSTROM THIS IS REALLY INTERESTING THAT NORDSTROM STOCK AT LAST CHECK WAS UP BY MORE THAN 22% TODAY ON USUAL FOR RETAILERS AND THAT'S ALL THE CIRCUMSTANCES THE DEAL HERE IS THAT RYAN COHEN WHO IS A VERY PROMINENT INVESTOR HAS BOUGHT A MAJOR STAKE IN NORDSTROM NOW IF YOU DON'T KNOW RYAN COHEN'S NAME, YOU KNOW SOME OF THE SHENANIGANS HE'S BEEN PULLING OFF. HE IS MEME STOCK INVESTOR YOU DON'T TALK ABOUT HERE GAMESTOP WELL, RYAN COHEN IS THE CHAIRMAN OF GAMESTOP HE WAS ALSO PUSHING BED BATH AND BEYOND STOCKS HIGHER UNTIL HE DECIDED TO DUMP HIS HOLDING THIS IS A GUY WHO'S NOT SHY ABOUT MAKING STOCKS TOO CRAZY MOVEMENTS FOR NO REASON WHATSOEVER SOME WOULD SAY PUMP AND DUMP AND NOW HE'S A SIGNIFICANT STAKE HOLDER IN NORDSTROM WHAT'S HE UP TO HERE.
WELL APPARENTLY HE'S TRYING TO SEEK BOARD CHANGES THAT WILL ALLOW FOR COST CUTTING AT THE RETAILER NORDSTROM FOR ITS PART SAYS IT'S OPEN TO WHATEVER COHEN HAS TO SAY, BUT IT HASN'T GOT ANY DEEPER THAN THAT. WHAT COHEN NEEDS TO KEEP IN MIND THAT NORDSTROM UNLIKE MANY OTHER RETAILERS ENJOYS A REPUTATION FOR HIGH QUALITY AND OUTSTANDING SERVICE YOU START NIBBLING AWAY AT THAT AND BEFORE YOU KNOW YOU'VE GOT KOHL'S AND YOU BETTER KEEP THE PIANO PLAYER ON KEEP THE PIANO FOR GOING TO TAKE A LOT OF THE PIAN.
ARE SET TO MAKE IT WORSE. BUT THERE ARE WAYS TO GET OUT OF THAT HOLE. BRIAN CHUNG REPORTS. >> Reporter: WITH THREE WEEKS TO GO, THE HOLIDAY RUSH IS WELL UNDERWAY. WITH EVERYTHING NEARLY 8% MORE EXPENSIVE THAN LAST YEAR, SHOPPERS ARE PAYING WITH PLASTIC TO BUY GIFTS THIS HOLIDAY SEASON. >> YEAH, I GOT SOME THINGS OFF OF AMAZON. I GOT A KARAOKE MACHINE FOR ONE OF MY DAUGHTERS. AND I GOT MY SON A BIKE. >> Reporter: WITH THOUSANDS OF DOLLARS IN DEBT, THE MOTHER OF THREE NOW FACES A SERIOUS CHALLENGE. >> I THINK IT'S KIND OF AN OUT OF SIGHT, OUT OF MIND KIND OF THING. >> SHE'S NOT THE ONLY ONE. JAMIE FELDMANN WAS ONCE $20,000 IN DEBT. >> EVERY TIME YOU DO A MINIMUM PAYMENT, THE NEXT MONTH, IT'S LIKE YOU DIDN'T PAY ANYTHING WITH THE INTEREST AND THE FEES. I'M JAMIE. >> Reporter: FELDMANN POSTED STORIES ON TIKTOK, ENGAGING OTHERS IN SIMILAR SITUATIONS. >> THERE WAS SOME MISMANAGEMENT OF MONEY.
>> Reporter: AMERICANS ARE HEADING INTO THE PEAK HOLIDAY SHOPPING SEASON WITH RECORD DEBT AS THEY BUY THINGS LIKE DEBT OR EVEN CHRISTMAS TREES, BUT THEY ALSO FACE RECORD HIGH INTEREST RATES IF THEY MISS A PAYMENT. >> CREDIT CARD DEBT HAS SOARED TO RECORD $866 BILLION AND THE AVERAGE INTEREST RATE NOW NEARING 20%. AT THAT RATE, MAKING MINIMUM PAYMENTS ON A $1,000 BILL WOULD TAKE OVER NINE YEARS TO PAY OFF, WRACKING UP ABOUT $990 IN INTEREST. >> I GOT A LOT OF EMAILERS FROM THE CARD ISSUERS JUST STATING THAT THE TERMS HAVE CHANGED, AND NINE TIMES OUT OF TEN, IT'S THE INTEREST RATE THAT'S INCREASING.
>> IT HASN'T STOPPED YOU FROM SPENDING THE WAY THAT YOU'RE SPENDING? >> NO. ONLY BECAUSE I FEEL, LIKE, PRESSURE TO, YOU KNOW, HAVE A GOOD CHRISTMAS FOR MY CHILDREN. >> Reporter: EXPERTS RECOMMEND PRIORITIZING 0% BALANCE TRANSFER CARDS AND CONSOLIDATING YOUR DEBT. >> IF THIS DESCRIBES YOU, NO SHAME. YOU HAVE PLENTY OF COMPANY. BUT LET'S FOCUS ON BRINGING THAT INTEREST RATE DOWN. >> Reporter: THERE'S OTHER STRATEGIES TOO. THIS HANUKKAH, JAMIE IS JUST FOCUSED ON SPENDING QUALITY TIME WITH LOVED ONES. >> THIS YEAR IT'S .
TO YOU. RISING INTEREST RATES THEY MIGHT HELP COOL INFLATION. BUT CAN BE EXPENSIVE FOR THOSE OF CREDIT CARD DEBT. >> IN FACT AMERICANS CREDIT CARD BALANCES AND INTEREST RATES ARE NEAR RECORD HIGHS JOINING US WITH TIPS TO KEEP YOUR CREDIT BILL UNDER CONTROL IS SENIOR INDUSTRY ANALYST FOR CREDITCARDS DOT COM TED ROSSMAN WE APPRECIATE YOU BEING HERE WE HAVE A TON OF QUESTIONS ARE GOING TO JUMP RIGHT IN LET'S TALK ABOUT INTEREST RATES WHAT KIND OF INTEREST RATES ARE AMERICANS PAYING AND HOW DOES IT IMPACT WHAT THEY'RE PAYING FOR. >> UNFORTUNATELY THE AVERAGE CREDIT CARD RATE IS AT A RECORD HIGH. IT'S 17.9 8% SO CALL THAT 18% RECORD HIGH THAT'S ACTUALLY THE LOW END OF THE RANGE THAT ISSUERS TEND TO OFFER SO IT'S FOR PEOPLE WITH BETTER.
CREDIT IF YOU HAVE A LESSER CREDIT SCORE. THE AVERAGE THERE IS MORE LIKE THE AVERAGE MEDIAN IS ABOUT 21 AND A HALF. LET'S FACE IT THESE ARE ALL REALLY HIGH AND THEY'VE BEEN GOING UP AND THEY'RE GOING TO GO UP MORE AS THE FED CONTINUES TO RAISE RATES OUT SO AS YOU SAY THAT HOW CAN A DIFFERENT CARD HELP PAY DOWN DEBT AS SOON AS POSSIBLE. >> THIS IS MY TOP TIP FOR PAYING DOWN CREDIT CARD DEBT. SO I WANT YOU TO DO IS TAKE YOUR EXISTING HIGH COST DEBT. >> THE AVERAGE BY THE WAY IS ABOUT $5300 PER PERSON ACCORDING TO TRANSUNION SO IF YOU MAKE MINIMUM PAYMENTS ABOUT AVERAGE INTEREST RATE GOING TO BE FOR MORE THAN 16 YEARS AND YOU'RE GOING TO PAY ABOUT $6500 IN INTEREST. SO WE DON'T WANT YOU TO DO THAT MOVE OVER TO A NEW CARD WITH A 0% INTEREST RATE. A NEW BALANCE TRANSFER CARD LIKE THAT WITH A 0% PROMO THAT LAST AS LONG AS 21 MONTHS THAT CAN HELP YOU OUT TREMENDOUSLY EXAMPLES INCLUDE THE WELLS FARGO ARE FLAT THE CITI SIMPLICITY AND THE CITY DIAMOND PREFERRED.
>> CAN YOU TALK ABOUT WHAT THE PROS AND CONS ARE OF ACTUALLY USING A PERSONAL LOAN TO REPLACE A HIGH INTEREST CREDIT CARD. >> YOU KNOW THIS IS ANOTHER GOOD DEBT PAYOFF STRATEGY. I LIKE THE 0% BALANCE TRANSFER A LITTLE BETTER BECAUSE IT'S 0% WHEREAS PERSONAL LOAN RATES TEND TO START AT MORE LIKE IF YOU HAVE GOOD CREDIT. THE AVERAGE IS AROUND 1011% CAN GO UP FROM THERE. BUT IF YOU HAVE GOOD CREDIT ONE ADVANTAGE HERE IS THAT YOU CAN HAVE A LONGER TERM I MENTIONED THE BALANCE TRANSFER PROMISE TOP OUT AT 21 MONTHS WITH A PERSONAL LOAN, YOU COULD MAYBE GET A 5% RAIDER 6% RATE FOR SOMETHING LIKE 5 SO THAT MIGHT HELP INSTILL UNSECURED DOUBT THESE LAWS ARE SIMPLE TO APPLY FOR QUALIFY FOR A LOOK YOUR SPECIFIC TERMS BUT IT'S EASIER TO QUALIFY FOR THAN A HOME EQUITY LINE OF CREDIT FOR EXAMPLE, AND IT WILL PUT YOUR HOUSE ON THE LINE SO I THINK THIS IS A STRONG CONSIDERATION.
>> WHAT DID LET ME STOP YOU RIGHT THERE EVERY HAPPENS IN THE MAIL EVERY DAY YOU GET THESE OFFERS WERE SOME OF WILL GIVE YOU A $50,000 AT THIS RATE AND MY PARENTS ALWAYS LOOK WHEN SOMETHING SOUNDS TOO GOOD TO BE TRUE IT NORMALLY IS SO HOW DO WE GO ABOUT GOING TO SOMEONE FOR A LOAN IS IT IS IT HELPFUL. I'M ASSUMING WE SHOULD PROBABLY TOSSED AWAY THOSE LETTERS THAT WE GET OFFERING A 50,000 THAT SHOULD BE GOING TO A BANK'S WE TALK TO A FINANCIAL EXPERT ABOUT HOW TO GET THESE LOANS. >> YOU WANT TO SHOP AROUND BECAUSE THE TERMS VARY WIDELY ON SOMETHING LIKE A PERSONAL ON ITS OFTEN THESE ONLINE KIND OF LENDERS THAT HAVE THE BEST RAINS. SO YOU MIGHT BE ABLE TO GET SOMETHING LIKE 6% OVER 5 YEARS ACTUALLY OUR SISTER SITE BANKRATE HAS A GOOD BUT DEFINITELY LOOKING TO THE FINE PRINT LOOK INTO THE ORIGINATION FEES THOSE CAN VARY A LOT FROM NOTHING ALL THE WAY UP TO LET'S SAY 80% OF THE AMOUNT BEING BORROWED BALANCE TRANSFER CARDS YOU WANT TO BE AWARE OF THE TERM YOU WANT TO BE AWARE OF ANY FEES THERE THERE'S OFTEN A 3 TO 5% UP FROM FEE.
I THINK ULTIMATELY THESE THINGS CAN WORK FOR YOU IF YOU'RE DISCIPLINED ABOUT PAYING IT BACK, YOU KNOW WANT TO JUST KICK THE CAN DOWN THE ROAD AND FROM HERE TO THERE AND NOT MAKE NO REAL PROGRESS. YOU'VE GOT TO MAKE SURE YOU ACTUALLY PAY IT DOWN WITH HIM OUT A LOT OF TIME RIGHT. >> WE TALK HOW WE CAN LOWER RATES I KNOW PEOPLE SAY IF YOU JUST CALL AND ASKED THEM SOMETIMES YOU JUST HAVE TO CALL AND ASK AND THE LOWER THE RATE FOR YOU IS THERE ANYTHING ELSE THAT WE SHOULD BE DOING PROACTIVELY. >> OFTEN WORKS IT WORKS ABOUT 3 QUARTERS OF THE TIME MY ISSUE WITH THAT IS THEY'LL PROBABLY TRIM A FEW POINTS OFF YOU KNOW, MAYBE YOU GO FROM 18% TO 15 OR 13 TO ME, IT'S STILL SO THAT'S WHY LIKE SOMETHING LIKE A 0% BALANCE TRANSFER OR LOW RATE PERSON ALONG IF YOU CAN GET ONE MOST PEOPLE CAN'T WE TYPICALLY NEED A CREDIT SCORE OF. LET'S SAY 6.70 OR OBVIOUSLY THE HIGHER YOU ARE THE BETTER TERMS YOU'RE GOING TO GET.
NONPROFIT CREDIT COUNSELING IS A GREAT OPTION THAT WE HAVEN'T MENTIONED YET THAT 10 YEARS TO A VERY WIDE SWATH OF PEOPLE YOU KNOW BE A GREAT CREDIT TO WORK WITH A REPUTABLE AGENCY LIKE MONEY MANAGEMENT INTERNATIONAL HAVE A LOT OF TIMES THEY CAN GET YOU ONE OF THESE 4 OR 5 YEAR TERMS WITH. LET'S SAY A 6% INTEREST RATE. THEY GIVE YOU HELPFUL ADVICE. THEY HOLD YOUR HAND THROUGH THE PROCESS I THINK THAT'S AN UNDERRATED OPTION IF YOU'RE NOT COMFORTABLE DOING IT ALONE OR IF YOU HAVE A LESSER CREDIT SCORE. >> ANY OTHER TIPS YOU CAN GIVE US IS YOU KNOW ASIDE FROM CUTTING UP THAT CREDIT CARD AND WATCHING OUR >> I WOULD NOTE THAT THE FUNDAMENTALS ARE IMPORTANT SO BESIDES THE STRATEGY WE MENTIONED AND THEY CAN ALL HELP LOOK FOR A SIDE HUSTLE SAW SOME STUFF YOU DON'T NEED CUT YOUR EXPENSES THESE ARE ADDITIONAL WAYS TO TURBOCHARGE YOUR DEBT PAYOFF STRATEGY.
IT DOES HAVE TO BE FOREVER. BUT IF YOU DO THIS EVEN FOR A FEW MONTHS YOU CAN START TO MAKE PROGRESS YOU GET THAT MOMENTUM ROLLING AND THEN ULTIMATELY CREDIT CARDS COULD WORK FOR YOU IN THE FUTURE IN THE FORM OF REWARDS, BUT YOU'VE GOT TO GET OUT OF THAT FIRST. >> TED WE THANK YOU FOR YOUR EXPERTISE JUST QUICKLY TO IT IS THAT BE FOR THE BROOKLYN DODGERS ABOVE YOUR RIGHT SHOULDER, WHAT BASEBALL FIELD IS THAT BECAUSE I CANNOT FIGURE IT OUT. >> SO THE B IS PREVENT GRADE ONE OF THE SITES I WORK WITH ON THE STADIUM'S COURSE SO I COURSE BILL BUT I THOUGHT IT WOULD BE WRONG AT THAT THAT WAS GOES YEAH AND YOU DODGERS ARE I WAS AT THE VERY FIRST ROCKIES GAME EVER SO REALLY THAT.
NBC NEWS SENIOR BUSINESS ANALYST STEPHANIE RUHLE NOW ON THE RISE OF CREDIT CARD DEBT. >> Reporter: ACROSS THE COUNTRY, PEOPLE ARE PAYING MORE FOR EVERYDAY EXPENSES. >> FRUIT, PAPER GOODS, ENGLISH MUFFINS, EVERYTHING. EVERYTHING. I'M BLOWN AWAY. >> I USED TO HAVE SAVINGS. I DON'T HAVE IT ANYMORE. >> Reporter: MARIE DiMASCIO SEAS IT EVERY TIME SHE SHOYRNGS WAIT, THAT WASN'T LIKE A YEAR AGO. >> Reporter: A PODCASTER LIVING IN NEW YORK CITY, OVER THE LAST YEAR, SHE HAS BEEN USING HER CREDIT CARD MORE OFTEN, AND IT'S ADDING UP. ARE YOU PAYING DOWN ANY OF THIS CREDIT CARD DEBT? >> I WAS PAYING THEM DOWN, BUT I'M CURRENTLY JUST DEALING WITH IT AS WE GO.
>> Reporter: MARIA IS LIKE MANY AMERICANS, TURNING TO CREDIT TO GET BY. IN FEBRUARY, CONSUMER DEBT ROSE MORE THAN $40 BILLION, A JUMP OF MORE THAN 11%. THE HIGHEST IN MORE THAN TWO DECADES. CREDIT CARD DEBT IS UP NEARLY 21%. >> THESE BALANCES HAVE BEEN RISING FOR A FEW REASONS. INFLATION IS A BIG ONE. BUT I WOULD ALSO NOTE HIGHER CONSUMER SPENDING IN GENERAL AND THE DIGITIZATION OF PAYMENT. PEOPLE ARE USING LESS CASH. >> Reporter: DURING THE PANDEMIC, GOVERNMENT AID POURED INTO AMERICANS' BANK ACCOUNTS. MONEY THEY'RE NOW USING TO PAY THEIR CREDIT CARD. >> PERSONAL SAVINGS INCREASED BY ABOUT $2 TRILLION. WE STAYED HOME AND LOADED UP ON HOME RENOVATIONS AND NEW TVs. NOW PEOPLE ARE STARTING TO SHIFT, AND IT'S MORE ABOUT PLANE TICKET, MEALS, EVENT TICKETS, THINGS LIKE THAT.
>> Reporter: BUT FOR SOME, CREDIT CARD BILLS ARE GETTING HARDER TO KEEP UP WITH. AND EXPERTS SAY IT'S IMPORTANT TO ACT NOW SO YOUR DEBT DOESN'T GET OUT OF HAND. THEIR ADVICE, APPLY FOR A ZERO PERCENT TRANSFER BALANCE CREDIT CARD. NEGOTIATE WITH YOUR CREDIT CARD COMPANY, OR CONSOLIDATE YOUR DEBT WITH A LOAN THAT HAS A LOWER INTEREST RATE. WHILE MANY ARE STILL ABLE TO PAY THEIR CREDIT CARD BILLS ON TIME, EXPERTS WARN THAT COULD EASILY SHIFT. >> WE CAN'T GO THROUGH THAT MANY MORE MONTHS AND CORRIDORS OF THIS VERY, VERY HIGH INFLATION WITHOUT SOMETHING BREAKING. EITHER A RECESSION AT SOME POINT OR MORE.
