WWW.ABC11.COM! >>> EYEWITNESS NEWS IS KEEPING AN EYE ON THE ECONOMY. CONCERNS OF INFLATION ARE CATCHING UP WITH CONSUMER CONFIDENCE. THE INDEX FELL BY MORE THAN 5% THIS MONTH. ECONOMISTS LINK THE POSITIVE CHANGES TO THE DECLINE IN GAS PRICES. >>> THE CHANGE REPORTED OCTOBER COMES UP GOVERNMENT REPORTED INFLATION ACCELERATED LAST MONTH THAT THE COST OF HOUSING AND SO MANY OTHER THINGS INTENSIFYING. IT IS A STRUGGLE THAT HAS PUSHED MANY FAMILIES TO RELY HEAVILY ON CREDIT CARDS RIGHT NOW TO GET BY. DeJUAN HOGGARD JOINS US LIVE NOW WITH MORE. >> YOU TALKED TO A FINANCIAL EXPERT ABOUT THIS. WHAT ADVICE CAN YOU SHARE WITH US? >> FIRST OFF, I WILL LET YOU KNOW THAT WE OFTEN TALK ABOUT CREDIT CARDS AND THE RISING DEBT THAT AMERICANS CONTINUE TO CARRY ON THEM.
AS WE HEAD INTO THANKSGIVING, MANY CONSUMERS ARE CONCERNED ABOUT HOW THEIR FINANCES WILL SHAPE UP WHEN IT IS ALL SAID AND DONE. AS AMERICANS FACE HISTORIC INFLATION RATES AND PRICES ON EVERYDAY ITEMS LIKE GROCERIES AND GAS CONTINUE TO INCREASE, MORE AND MORE PEOPLE ARE TURNING TO THEIR CREDIT CARDS FOR PURCHASES. >> I TRY NOT TO DO THAT. I DO USE ONE ONLY BECAUSE YOU GET MONEY OFF ON THE GAS.
OVERALL, THAT IS ACTUALLY A GOOD SAVINGS. >> MY ADVICE IS, IF YOU'RE GETTING A CREDIT CARD, TRY TO MAKE SURE YOU PAY OFF IN 30 DAYS. >> Reporter: CONSUMERS LIKE KAREN AND CLARK FIND CREATIVE WAYS TO AVOID PLAYING TOO MUCH AND LIMIT THE AMOUNT OF CREDIT CARD DEBT THEY CARRY. IN FACT, AMERICANS OH $887 BILLION ON THEIR CREDIT CARDS. THAT IS A 13% INCREASE COMPARED TO LAST YEAR.
>> A LOT OF PEOPLE USING CREDIT CARDS TO MAKE ENDS MEET, WHICH THEY PROBABLY HAVE DONE IN THE PAST AND THEY ARE JUST CONTINUING THAT THROUGH THESE TIMES WE ARE GOING TO RIGHT NOW. >> Reporter: FINANCIAL EXPERT AND WEALTH ADVISOR SAYS TO LOOK AT YOUR BUDGET LIKE A BUSINESS. >> WE AS CONSUMERS DON'T DO THAT ENOUGH. WE DON'T LOOK AT OUR OWN PERSONAL SITUATION LIKE A CFO WOULD DO A BUSINESS. THIS IS THE TIME YOU SHOULD DO THAT. >> Reporter: RECENT SURVEY SAYS 54% OF PEOPLE PLAN ON SPENDING MORE THIS HOLIDAY SEASON BECAUSE OF INFLATION AND 50% OF PEOPLE PLAN ON USING THEIR CREDIT CARD FOR SHOPPING. >> THE MAIN THING IS SHOPPING SMART. MAYBE SPENDING LESS, TRYING TO BE MORE CREATIVE ON YOUR GIFTGIVING. >> Reporter: IF YOU MUST USE A CREDIT CARD, EXPERTS SUGGEST PAYING THE CARD IN FULL AT THE END OF THE MONTH OR CALL YOUR CREDIT CARD COMPANY FOR A LOWER INTEREST RATE.
>> WE JUST WENT THROUGH A SITUATION WHERE WE TRIED TO GET OUR INTEREST REDUCED. >> DID IT WORK? >> SOMEWHAT. IT DID. >> Reporter: IT IS DEFINITELY WORTH A TRY, ESPECIALLY FOR THE AVERAGE RATE FOR AMERICANS CARRYING A BALANCE ON THEIR CREDIT CARD RIGHT NOW, .
CLICKONDETROIT.COM HANK
WINCHESTER, HELP ME HANK BACK TO
YOU. APPRECIATE THE TIPS. THANK WINCHESTER, HELP ME HANK BACK TO
YOU. APPRECIATE THE TIPS. THANK
THANK YOU. IT IS ONE OF THE MOST YOU. APPRECIATE THE TIPS. THANK
THANK YOU. IT IS ONE OF THE MOST
COMMON NEW YEAR’S RESOLUTIONS THANK YOU. IT IS ONE OF THE MOST
COMMON NEW YEAR’S RESOLUTIONS
GETTING CONTROL OVER OUR COMMON NEW YEAR’S RESOLUTIONS
GETTING CONTROL OVER OUR
FINANCES. AND FOR THE MOST PART, GETTING CONTROL OVER OUR
FINANCES. AND FOR THE MOST PART,
THAT MEANS REDUCING YOUR DEBT, FINANCES. AND FOR THE MOST PART,
THAT MEANS REDUCING YOUR DEBT,
PARTICULARLY CREDIT CARD DEBT, THAT MEANS REDUCING YOUR DEBT,
PARTICULARLY CREDIT CARD DEBT,
WHICH IS CONSIDERED BY FINANCIAL PARTICULARLY CREDIT CARD DEBT,
WHICH IS CONSIDERED BY FINANCIAL
EXPERTS AS TOXIC DEBT. SO WE WHICH IS CONSIDERED BY FINANCIAL
EXPERTS AS TOXIC DEBT. SO WE
TURNED TO LOCAL 4 BUSINESS EXPERTS AS TOXIC DEBT.
SO WE
TURNED TO LOCAL 4 BUSINESS
EDITOR AND CERTIFIED FINANCIAL TURNED TO LOCAL 4 BUSINESS
EDITOR AND CERTIFIED FINANCIAL
PLANNER ROD MELONI FOR ADVICE EDITOR AND CERTIFIED FINANCIAL
PLANNER ROD MELONI FOR ADVICE
AND HOW TO WRESTLE THIS PROBLEM PLANNER ROD MELONI FOR ADVICE
AND HOW TO WRESTLE THIS PROBLEM
TO THE GROUND. ONE OF THOSE AND HOW TO WRESTLE THIS PROBLEM
TO THE GROUND. ONE OF THOSE
THINGS THAT MANY PEOPLE WANT TO TO THE GROUND. ONE OF THOSE
THINGS THAT MANY PEOPLE WANT TO
DO IN THE NEW YEAR IS ATTACK THINGS THAT MANY PEOPLE WANT TO
DO IN THE NEW YEAR IS ATTACK
THEIR CREDIT CARD DEBT. AND WHY DO IN THE NEW YEAR IS ATTACK
THEIR CREDIT CARD DEBT. AND WHY
NOT CONSIDERING THE AVERAGE THEIR CREDIT CARD DEBT. AND WHY
NOT CONSIDERING THE AVERAGE
AMERICAN HAS BETWEEN FIVE AND NOT CONSIDERING THE AVERAGE
AMERICAN HAS BETWEEN FIVE AND
$6000 OF THIS VERY BAD DEBT AMERICAN HAS BETWEEN FIVE AND
$6000 OF THIS VERY BAD DEBT
TAKES A LONG TIME TO DEAL WITH $6000 OF THIS VERY BAD DEBT
TAKES A LONG TIME TO DEAL WITH
IT.
SO IF YOU’VE MADE THAT TAKES A LONG TIME TO DEAL WITH
IT. SO IF YOU’VE MADE THAT
DECISION HERE ARE SOME THOUGHTS IT. SO IF YOU’VE MADE THAT
DECISION HERE ARE SOME THOUGHTS
ON HOW TO GET THERE. A RECENT U. DECISION HERE ARE SOME THOUGHTS
ON HOW TO GET THERE. A RECENT U.
S NEWS SURVEY SAYS 31% OF US ON HOW TO GET THERE. A RECENT U.
S NEWS SURVEY SAYS 31% OF US
EXPECTED TO SPEND MORE ON THE S NEWS SURVEY SAYS 31% OF US
EXPECTED TO SPEND MORE ON THE
HOLIDAYS BECAUSE OF HIGH PRICES EXPECTED TO SPEND MORE ON THE
HOLIDAYS BECAUSE OF HIGH PRICES
. 33% HAD NO HOLIDAY SHOPPING HOLIDAYS BECAUSE OF HIGH PRICES
. 33% HAD NO HOLIDAY SHOPPING
CREDIT CARD STRATEGY AT ALL AND . 33% HAD NO HOLIDAY SHOPPING
CREDIT CARD STRATEGY AT ALL AND
HALF AREN’T TRAVEL. BLING THIS CREDIT CARD STRATEGY AT ALL AND
HALF AREN’T TRAVEL. BLING THIS
HOLIDAY SEASON BECAUSE OF THEIR HALF AREN’T TRAVEL. BLING THIS
HOLIDAY SEASON BECAUSE OF THEIR
DEBT. THE WOMAN BEHIND THAT HOLIDAY SEASON BECAUSE OF THEIR
DEBT.
THE WOMAN BEHIND THAT
STUDY IS CREDIT EXPERT BEVERLY DEBT. THE WOMAN BEHIND THAT
STUDY IS CREDIT EXPERT BEVERLY
HARTZOG. ONE THING I RECOMMEND STUDY IS CREDIT EXPERT BEVERLY
HARTZOG. ONE THING I RECOMMEND
IS A BALANCE TRANSFER CREDIT HARTZOG. ONE THING I RECOMMEND
IS A BALANCE TRANSFER CREDIT
CARD IF YOU’VE GOT DEBT, AND IF IS A BALANCE TRANSFER CREDIT
CARD IF YOU’VE GOT DEBT, AND IF
YOU STILL HAVE A DECENT CREDIT CARD IF YOU’VE GOT DEBT, AND IF
YOU STILL HAVE A DECENT CREDIT
SCORE, YOU MIGHT BE ABLE TO GET YOU STILL HAVE A DECENT CREDIT
SCORE, YOU MIGHT BE ABLE TO GET
APPROVED FOR ONE OF THESE CARDS.
SCORE, YOU MIGHT BE ABLE TO GET
APPROVED FOR ONE OF THESE CARDS.
WHEN THIS HAPPENS, YOU’LL GET A APPROVED FOR ONE OF THESE CARDS.
WHEN THIS HAPPENS, YOU’LL GET A
CARD. YOU CAN TRANSFER YOUR WHEN THIS HAPPENS, YOU’LL GET A
CARD. YOU CAN TRANSFER YOUR
BALANCES AND YOU’LL GET TO A 0% CARD. YOU CAN TRANSFER YOUR
BALANCES AND YOU’LL GET TO A 0%
INTEREST RATE FOR A CERTAIN BALANCES AND YOU’LL GET TO A 0%
INTEREST RATE FOR A CERTAIN
PERIOD OF TIME. AND RIGHT NOW INTEREST RATE FOR A CERTAIN
PERIOD OF TIME. AND RIGHT NOW
I’M SEEING BETWEEN 12 AND 21 PERIOD OF TIME. AND RIGHT NOW
I’M SEEING BETWEEN 12 AND 21
MONTHS. REMEMBER THIS AMOUNTS TO I’M SEEING BETWEEN 12 AND 21
MONTHS. REMEMBER THIS AMOUNTS TO
DEBT CONSOLIDATION AND THOSE MONTHS. REMEMBER THIS AMOUNTS TO
DEBT CONSOLIDATION AND THOSE
HIGH INTEREST RATES KICK BACK IN DEBT CONSOLIDATION AND THOSE
HIGH INTEREST RATES KICK BACK IN
AFTER THE INITIAL BORROWING HIGH INTEREST RATES KICK BACK IN
AFTER THE INITIAL BORROWING
PERIOD, USUALLY AFTER ABOUT A AFTER THE INITIAL BORROWING
PERIOD, USUALLY AFTER ABOUT A
YEAR TO MAYBE 18 MONTHS.
YOU PERIOD, USUALLY AFTER ABOUT A
YEAR TO MAYBE 18 MONTHS. YOU
SHOULD ALSO CUT UP HER. CANCEL YEAR TO MAYBE 18 MONTHS. YOU
SHOULD ALSO CUT UP HER. CANCEL
ALL OF YOUR OTHER CREDIT CARDS SHOULD ALSO CUT UP HER. CANCEL
ALL OF YOUR OTHER CREDIT CARDS
TO PREVENT GOING FURTHER INTO ALL OF YOUR OTHER CREDIT CARDS
TO PREVENT GOING FURTHER INTO
DEBT. CULTIVATE FINANCIAL TO PREVENT GOING FURTHER INTO
DEBT. CULTIVATE FINANCIAL
WELLNESS CERTIFIED FINANCIAL DEBT. CULTIVATE FINANCIAL
WELLNESS CERTIFIED FINANCIAL
PLANNER JULIE QUICK SAYS THAT WELLNESS CERTIFIED FINANCIAL
PLANNER JULIE QUICK SAYS THAT
HER CLIENTS FIND GETTING CLEAR PLANNER JULIE QUICK SAYS THAT
HER CLIENTS FIND GETTING CLEAR
ABOUT WHAT THEY ARE SPENDING HER CLIENTS FIND GETTING CLEAR
ABOUT WHAT THEY ARE SPENDING
THEIR MONEY ON ALLOWS THEM TO ABOUT WHAT THEY ARE SPENDING
THEIR MONEY ON ALLOWS THEM TO
FIND WAYS TO CUT BACK AND THEN THEIR MONEY ON ALLOWS THEM TO
FIND WAYS TO CUT BACK AND THEN
ATTACK DEBT HEAD OFF AND ONCE WE FIND WAYS TO CUT BACK AND THEN
ATTACK DEBT HEAD OFF AND ONCE WE
DO A SPENDING ANALYSIS, THEY ARE ATTACK DEBT HEAD OFF AND ONCE WE
DO A SPENDING ANALYSIS, THEY ARE
SHOCKED AT HOW MUCH THEY SPEND DO A SPENDING ANALYSIS, THEY ARE
SHOCKED AT HOW MUCH THEY SPEND
ON DINING OUT OR SHOPPING.
SHOCKED AT HOW MUCH THEY SPEND
ON DINING OUT OR SHOPPING.
AMAZON IS A BIG CULPRIT, AND SO ON DINING OUT OR SHOPPING.
AMAZON IS A BIG CULPRIT, AND SO
I THINK GETTING THE DATA AND AMAZON IS A BIG CULPRIT, AND SO
I THINK GETTING THE DATA AND
FINDING OUT WHERE YOUR MONEY IS I THINK GETTING THE DATA AND
FINDING OUT WHERE YOUR MONEY IS
GOING IS FIRST AND FOREMOST. FINDING OUT WHERE YOUR MONEY IS
GOING IS FIRST AND FOREMOST.
IMPACTFUL WAY TO PAY OFF CREDIT GOING IS FIRST AND FOREMOST.
IMPACTFUL WAY TO PAY OFF CREDIT
CARD DEBT IS TARGETING ONE CARD IMPACTFUL WAY TO PAY OFF CREDIT
CARD DEBT IS TARGETING ONE CARD
AT A TIME.
THERE’S THE DEBT CARD DEBT IS TARGETING ONE CARD
AT A TIME. THERE’S THE DEBT
AVALANCHE METHOD RANK YOUR CARDS AT A TIME. THERE’S THE DEBT
AVALANCHE METHOD RANK YOUR CARDS
BY THE HIGHEST TO THE LOWEST AVALANCHE METHOD RANK YOUR CARDS
BY THE HIGHEST TO THE LOWEST
INTEREST RATE, PAY MINIMUMS AND BY THE HIGHEST TO THE LOWEST
INTEREST RATE, PAY MINIMUMS AND
ALL BUT THE HIGHEST INTEREST INTEREST RATE, PAY MINIMUMS AND
ALL BUT THE HIGHEST INTEREST
RATE ACCOUNT AND PAY AS MUCH AS ALL BUT THE HIGHEST INTEREST
RATE ACCOUNT AND PAY AS MUCH AS
YOU CAN ON THAT ONE. THIS NET RATE ACCOUNT AND PAY AS MUCH AS
YOU CAN ON THAT ONE. THIS NET
YOU THE BEST OVERALL DEBT YOU CAN ON THAT ONE. THIS NET
YOU THE BEST OVERALL DEBT
REDUCTION, BUT IT TAKES MUCH YOU THE BEST OVERALL DEBT
REDUCTION, BUT IT TAKES MUCH
LONGER. MANY PREFER WHAT’S REDUCTION, BUT IT TAKES MUCH
LONGER. MANY PREFER WHAT’S
CALLED THE DEBT SNOWBALL, PAYING LONGER. MANY PREFER WHAT’S
CALLED THE DEBT SNOWBALL, PAYING
OFF THE CARD WITH THE SMALLEST CALLED THE DEBT SNOWBALL, PAYING
OFF THE CARD WITH THE SMALLEST
BALANCE, NETTING YOU A QUICK OFF THE CARD WITH THE SMALLEST
BALANCE, NETTING YOU A QUICK
ADRENALINE RUSH A PSYCHOLOGICAL BALANCE, NETTING YOU A QUICK
ADRENALINE RUSH A PSYCHOLOGICAL
BOOST, REALLY THAT YOU CAN USE ADRENALINE RUSH A PSYCHOLOGICAL
BOOST, REALLY THAT YOU CAN USE
TO ATTACK THE NEXT LOWEST BOOST, REALLY THAT YOU CAN USE
TO ATTACK THE NEXT LOWEST
BALANCED CARD AND THEN SO ON.
TO ATTACK THE NEXT LOWEST
BALANCED CARD AND THEN SO ON.
BUT HORIZON’S SAYS, IF NONE OF BALANCED CARD AND THEN SO ON.
BUT HORIZON’S SAYS, IF NONE OF
THESE WORK AND YOU’RE DROWNING BUT HORIZON’S SAYS, IF NONE OF
THESE WORK AND YOU’RE DROWNING
IN DEBT YOU CAN’T REPAY. I THESE WORK AND YOU’RE DROWNING
IN DEBT YOU CAN’T REPAY. I
RECOMMEND CONTACTING THE IN DEBT YOU CAN’T REPAY. I
RECOMMEND CONTACTING THE
NATIONAL FOUNDATION FOR CREDIT RECOMMEND CONTACTING THE
NATIONAL FOUNDATION FOR CREDIT
COUNSELING. AND JUST REACHING NATIONAL FOUNDATION FOR CREDIT
COUNSELING. AND JUST REACHING
OUT TO THEM DOESN’T LOWER YOUR COUNSELING. AND JUST REACHING
OUT TO THEM DOESN’T LOWER YOUR
SCORE. CREDIT COUNSELING ITSELF OUT TO THEM DOESN’T LOWER YOUR
SCORE. CREDIT COUNSELING ITSELF
DOESN’T WORRY YOUR SCORE IF YOU SCORE. CREDIT COUNSELING ITSELF
DOESN’T WORRY YOUR SCORE IF YOU
DECIDE TO DO SOMETHING, SUCH AS DOESN’T WORRY YOUR SCORE IF YOU
DECIDE TO DO SOMETHING, SUCH AS
A MANAGEMENT PLAN THAT COULD DECIDE TO DO SOMETHING, SUCH AS
A MANAGEMENT PLAN THAT COULD
EVENTUALLY IMPACT YOUR SCORE, A MANAGEMENT PLAN THAT COULD
EVENTUALLY IMPACT YOUR SCORE,
BUT THE MOST IMPORTANT THING EVENTUALLY IMPACT YOUR SCORE,
BUT THE MOST IMPORTANT THING
WOULDN’T HAVE CREDIT CARD DEBT BUT THE MOST IMPORTANT THING
WOULDN’T HAVE CREDIT CARD DEBT
IS THAT IT’S TOXIC DEBT.
ONE OF WOULDN’T HAVE CREDIT CARD DEBT
IS THAT IT’S TOXIC DEBT. ONE OF
THE OTHER THINGS THAT BEVERLY IS THAT IT’S TOXIC DEBT. ONE OF
THE OTHER THINGS THAT BEVERLY
HORIZONTAL TELLS ME IS THAT A THE OTHER THINGS THAT BEVERLY
HORIZONTAL TELLS ME IS THAT A
LOT OF PEOPLE WITH CREDIT CARD HORIZONTAL TELLS ME IS THAT A
LOT OF PEOPLE WITH CREDIT CARD
DEBT AND ARE ANXIOUS TO GET OUT LOT OF PEOPLE WITH CREDIT CARD
DEBT AND ARE ANXIOUS TO GET OUT
OF THAT CAN BE VERY VULNERABLE DEBT AND ARE ANXIOUS TO GET OUT
OF THAT CAN BE VERY VULNERABLE
TO SCAMMERS, SHE SAID.
DO NOT OF THAT CAN BE VERY VULNERABLE
TO SCAMMERS, SHE SAID. DO NOT
LOOK FOR THE QUICK FIX HERE. IS TO SCAMMERS, SHE SAID. DO NOT
LOOK FOR THE QUICK FIX HERE. IS
GOING TO TAKE SOME TIME. WE HAVE LOOK FOR THE QUICK FIX HERE. IS
GOING TO TAKE SOME TIME. WE HAVE
GREAT READING ON THIS SUBJECT TO GOING TO TAKE SOME TIME. WE HAVE
GREAT READING ON THIS SUBJECT TO
HELP YOU FURTHER ON GREAT READING ON THIS SUBJECT TO
HELP YOU FURTHER ON
CLICKONDETROIT.COM ROD MELONI HELP YOU FURTHER ON
CLICKONDETROIT.COM ROD MELONI
LOCAL 4 OKAY. THANK YOU. JAMIE’S CLICKONDETROIT.COM ROD MELONI
LOCAL 4 OKAY. THANK YOU. JAMIE’S
BACK WITH SPORTS. ANOTHER BIG LOCAL 4 OKAY. THANK YOU. JAMIE’S
BACK WITH SPORTS. ANOTHER BIG
DAY OUT NEAR PHOENIX. HERE.
Ohh, debt. Most of us have it. Most of us would like to get rid of it. There's a video going around on social media and it promises to help get you out of debt. And I'm going to show it to you, but I don't want you getting your hopes up. I just got a payment of $17,000 straight to my credit card to pay off my balance thanks to the National Debt Association that recently approved the new debt relief program. To anyone who has over $10,000 in credit card debt, it's simply not true. This is just a really a a scheme to have folks call and talk to this credit debt relief company I actually called myself just to kind of walk through their process. And that debt relief help process usually consists of you stopping all credit card payments so that the company can then negotiate on your behalf with your credit card company. That right there should make you nervous no matter how many times the company tells you that they can make your debt go away. This often will destroy your credit for a very long time.
What I suggest is you use the tried and true methods first. It's simply communicate with your credit card companies, let them know you're struggling, you're falling behind, and see if they can't lower your interest rate. The Consumer Financial Protection Bureau put out a warning about debt settlement and relief services just like this. And it takes you through the process and the pitfalls. And it talks about avoiding any business that touts a new government program to bail out personal credit card debt. Yeah, it's right there. OK, that sounds just like the video I showed you at the beginning of the story. Right. So the last piece of advice, just don't fall for it..
WHY THE OWNERS SAYING THAT HIS
COMPANY IS FALLING BEHIND.
WE’LL HAVE THAT FOR YOU. COMPANY IS FALLING BEHIND.
WE’LL HAVE THAT FOR YOU.
WE SEE YOU TONIGHT AT 6. WE’LL HAVE THAT FOR YOU.
WE SEE YOU TONIGHT AT 6.
STEPHANIE, A NOW TO YOUR MONEY, WE SEE YOU TONIGHT AT 6.
STEPHANIE, A NOW TO YOUR MONEY,
SPECIFICALLY YOUR CREDIT CARDS. STEPHANIE, A NOW TO YOUR MONEY,
SPECIFICALLY YOUR CREDIT CARDS.
THE FED RAISED ITS BORROWING SPECIFICALLY YOUR CREDIT CARDS.
THE FED RAISED ITS BORROWING
RATE YET AGAIN THIS WEEK. THE FED RAISED ITS BORROWING
RATE YET AGAIN THIS WEEK.
AND THAT MEANS THE ANNUAL RATE YET AGAIN THIS WEEK.
AND THAT MEANS THE ANNUAL
PERCENTAGE RATE ON YOUR CREDIT AND THAT MEANS THE ANNUAL
PERCENTAGE RATE ON YOUR CREDIT
CARD WILL BE ONE OF THE FIRST PERCENTAGE RATE ON YOUR CREDIT
CARD WILL BE ONE OF THE FIRST
THINGS TO JUMP.
12 NEWS HAS CARD WILL BE ONE OF THE FIRST
THINGS TO JUMP. 12 NEWS HAS
BEEN MORE ON WHAT EXPERTS SAY THINGS TO JUMP. 12 NEWS HAS
BEEN MORE ON WHAT EXPERTS SAY
YOU SHOULD DO NOW. BEEN MORE ON WHAT EXPERTS SAY
YOU SHOULD DO NOW.
GAS TO GROCERIES. PAYING WITH YOU SHOULD DO NOW.
GAS TO GROCERIES. PAYING WITH
PLASTIC IS ON THE RISE. ELSA GAS TO GROCERIES. PAYING WITH
PLASTIC IS ON THE RISE. ELSA
ROBE LIST DOESN’T USUALLY CARRY PLASTIC IS ON THE RISE. ELSA
ROBE LIST DOESN’T USUALLY CARRY
A BALANCE. SHE DOES. NOW LATELY ROBE LIST DOESN’T USUALLY CARRY
A BALANCE. SHE DOES. NOW LATELY
WE’VE KIND OF BEEN RELYING A BALANCE. SHE DOES. NOW LATELY
WE’VE KIND OF BEEN RELYING
UNFORTUNATELY BECAUSE PRICES WE’VE KIND OF BEEN RELYING
UNFORTUNATELY BECAUSE PRICES
ARE UP.
YEAH, PRICES UNFORTUNATELY BECAUSE PRICES
ARE UP. YEAH, PRICES
>> WHERE EVERYTHING. AND NOW A ARE UP. YEAH, PRICES
>> WHERE EVERYTHING. AND NOW A
DOUBLE WHAMMY. EXPECT TO SEE A >> WHERE EVERYTHING. AND NOW A
DOUBLE WHAMMY. EXPECT TO SEE A
HIGHER INTEREST RATE ON YOUR DOUBLE WHAMMY. EXPECT TO SEE A
HIGHER INTEREST RATE ON YOUR
CREDIT CARD AS SOON AS YOUR HIGHER INTEREST RATE ON YOUR
CREDIT CARD AS SOON AS YOUR
NEXT STATEMENT, IF YOU PAY OFF CREDIT CARD AS SOON AS YOUR
NEXT STATEMENT, IF YOU PAY OFF
YOUR CARD EVERY MONTH AND A NEXT STATEMENT, IF YOU PAY OFF
YOUR CARD EVERY MONTH AND A
HIGHER INTEREST RATE MAY NOT YOUR CARD EVERY MONTH AND A
HIGHER INTEREST RATE MAY NOT
MATTER TO YOU, BUT IF YOU CARRY HIGHER INTEREST RATE MAY NOT
MATTER TO YOU, BUT IF YOU CARRY
A BALANCE, IT’S NOW GOING TO MATTER TO YOU, BUT IF YOU CARRY
A BALANCE, IT’S NOW GOING TO
COST YOU A LITTLE BIT MORE.
A BALANCE, IT’S NOW GOING TO
COST YOU A LITTLE BIT MORE.
EVERY TIME YOU SWIPE YOUR CARD. COST YOU A LITTLE BIT MORE.
EVERY TIME YOU SWIPE YOUR CARD.
SO EXPERTS SAY THE TIME IS NOW EVERY TIME YOU SWIPE YOUR CARD.
SO EXPERTS SAY THE TIME IS NOW
TO PAY DOWN YOUR DEBT. LOT OF SO EXPERTS SAY THE TIME IS NOW
TO PAY DOWN YOUR DEBT. LOT OF
PEOPLE DON’T REALIZE THIS IS TO PAY DOWN YOUR DEBT. LOT OF
PEOPLE DON’T REALIZE THIS IS
NEW AND EXISTING BALANCES THAT PEOPLE DON’T REALIZE THIS IS
NEW AND EXISTING BALANCES THAT
ARE AFFECTED. NEW AND EXISTING BALANCES THAT
ARE AFFECTED.
>> BY THESE RATE HIKES, IT’S ARE AFFECTED.
>> BY THESE RATE HIKES, IT’S
BEST TO PAY OFF A CARD EVERY >> BY THESE RATE HIKES, IT’S
BEST TO PAY OFF A CARD EVERY
MONTH.
BUT IF YOU CAN’T BANK BEST TO PAY OFF A CARD EVERY
MONTH. BUT IF YOU CAN’T BANK
RATES, TED ROSSMAN SUGGEST MONTH. BUT IF YOU CAN’T BANK
RATES, TED ROSSMAN SUGGEST
OTHER STRATEGIES GET 0% RATES, TED ROSSMAN SUGGEST
OTHER STRATEGIES GET 0%
BALANCE. TRANSFER CARD. THAT’S OTHER STRATEGIES GET 0%
BALANCE. TRANSFER CARD. THAT’S
MY TOP TIP. IF YOU’RE WRESTLING BALANCE. TRANSFER CARD. THAT’S
MY TOP TIP. IF YOU’RE WRESTLING
WITH CREDIT CARD DEBT.
MY TOP TIP. IF YOU’RE WRESTLING
WITH CREDIT CARD DEBT.
>> THESE LET YOU AVOID INTEREST WITH CREDIT CARD DEBT.
>> THESE LET YOU AVOID INTEREST
FOR UP TO 21 MONTHS. THAT’S >> THESE LET YOU AVOID INTEREST
FOR UP TO 21 MONTHS. THAT’S
A HUGE BENEFIT TO CARRY OUTS. FOR UP TO 21 MONTHS. THAT’S
A HUGE BENEFIT TO CARRY OUTS.
THERE IS USUALLY A 3% TRANSFER A HUGE BENEFIT TO CARRY OUTS.
THERE IS USUALLY A 3% TRANSFER
FEE AND YOU NEED TO PAY THE THERE IS USUALLY A 3% TRANSFER
FEE AND YOU NEED TO PAY THE
CARD OFF IN THE ALLOTTED TIME. FEE AND YOU NEED TO PAY THE
CARD OFF IN THE ALLOTTED TIME.
ANOTHER OPTION GET A LOW-RATE CARD OFF IN THE ALLOTTED TIME.
ANOTHER OPTION GET A LOW-RATE
PERSONAL LOAN TO PAY OFF YOUR ANOTHER OPTION GET A LOW-RATE
PERSONAL LOAN TO PAY OFF YOUR
CARDS OR CONSIDER A NONPROFIT PERSONAL LOAN TO PAY OFF YOUR
CARDS OR CONSIDER A NONPROFIT
CREDIT COUNSELING AGENCY. CARDS OR CONSIDER A NONPROFIT
CREDIT COUNSELING AGENCY.
>> YOU CAN ALWAYS CALL YOUR CREDIT COUNSELING AGENCY.
>> YOU CAN ALWAYS CALL YOUR
CREDIT CARD COMPANY AND ASK >> YOU CAN ALWAYS CALL YOUR
CREDIT CARD COMPANY AND ASK
FOR A LOWER RATE.
IT OFTEN CREDIT CARD COMPANY AND ASK
FOR A LOWER RATE. IT OFTEN
WORKS. EVEN MORE RATE HIKES ARE FOR A LOWER RATE. IT OFTEN
WORKS. EVEN MORE RATE HIKES ARE
EXPECTED THIS FALL, MAKING WORKS. EVEN MORE RATE HIKES ARE
EXPECTED THIS FALL, MAKING
CREDIT CARDS MORE EXPENSIVE EXPECTED THIS FALL, MAKING
CREDIT CARDS MORE EXPENSIVE
THAN EVER TO USE CREDIT CARDS. CREDIT CARDS MORE EXPENSIVE
THAN EVER TO USE CREDIT CARDS.
MOST RATES ARE SO HIGH. IT’S THAN EVER TO USE CREDIT CARDS.
MOST RATES ARE SO HIGH. IT’S
REALLY HARD TO BUILD WEALTH. MOST RATES ARE SO HIGH. IT’S
REALLY HARD TO BUILD WEALTH.
WHEN YOU’RE PAYING THE CREDIT REALLY HARD TO BUILD WEALTH.
WHEN YOU’RE PAYING THE CREDIT
CARD COMPANY. WHEN YOU’RE PAYING THE CREDIT
CARD COMPANY.
>> 15 OR 20% EVERY MONTH. CARD COMPANY.
>> 15 OR 20% EVERY MONTH.
BOTTOM LINE PLAN NOW TO AVOID.
HERE'S TOM COSTELLO. >> Reporter: IN COLORADO, THIS WOMAN AND HER HUSBAND ARE ON A MISSION — TO KEEP SPENDING DOWN AND PAY OFF THE LAST OF THE $15,000 IN CREDIT CARD DEBT THEY RAN UP AFTER GETTING MARRIED. >> WE WANT TO BE ABLE TO BUY A HOUSE. WE DON'T HAVE A HOUSE YET. AND WE'RE IN OUR 30s. THAT'S HARD. BUT IT'S BECAUSE WE HAVE CREDIT CARD DEBT THINKING WE WOULD BE ABLE TO PAY IT OFF. >> Reporter: NEW DATA SHOWS MANY AMERICANS ARE CHARGING IT. CREDIT CARD DEBT JUMPED 13% IN ONE YEAR. THE BIGGEST INCREASE IN 20 YEARS. AND AMERICANS OPEN 233 MILLION NEW ACCOUNTS, THE MOST SINCE 2008. BALANCES STILL REMAIN BELOW PREPANDEMIC LEVELS, INTEREST RATES NOW AVERAGING 17.4% COULD SOON SOAR TO RECORD HIGHS. AS THE FED CONTINUES HIKING RATES TO FIGHT INFLATION. IF YOU'RE CARRYING HEAVY CREDIT CARD DEBT, FINANCIAL EXPERTS RECOMMEND CUTTING IT DOWN AS FAST AS POSSIBLE. >> THAT RATE IS PROBABLY THREE, FOUR, FIVE TIMES WHAT YOU'RE PAYING ON YOUR MORTGAGE OR CAR LOAN. THE SO DEFINITELY YOU WANT TO BE PAYING DOWN THE CREDIT CARD DEBT. >> Reporter: TRANSFER BALANCES TO CARDS OFFERING 0% RATES.
WILL TURN TO NONPROFIT FINANCIAL COUNSELLORS FOR HELP. THE WHITE HOUSE TODAY NOTING SOME INFLATION RELIEF WITH GAS PRICES NOW AVERAGING $4.16 A GALLON, DOWN 85 CENTS FROM THE RECORD HIGH SET IN JUNE. EXPERTS SAY GAS COULD FALL BELOW $4 A GALLON SOON THOUGH THE .
How much money do you have in savings? Hey, if it's less than $1000 you are not alone. A recent survey found 37% of Americans have under $1000 in savings. It comes as financial experts say. They are seeing increases in credit card debt. We are tackling all things money today with Jenna Adams from debt sucks university. Sounds better, better still working on that. Alright, and Ted Rossman from bankrate.com and creditcards.com. So the first question Ted. I'm going to ask this to you. What trends are we seeing in credit card debt during the pandemic? So the overall trend has actually been surprisingly positive.
We've actually seen total credit card debt fall 15% during the pandemic. That, however, is hiding the fact that unfortunately, a lot of people aren't doing so well. We actually found that 42% of households have added to their credit card debt during the pandemic, and you know we're specifically talking about young adults here. In general, that tends to be the way it it skews, and I would just note that. Her debt remains a persistent problem, even though the overall trend is positive, the average person with credit card debt owes over $5500, according to Experian, and about half of people in credit card debt have had it for at least a year. The interest rates are high. We definitely want to come up with some good strategies to pay that down. Whether that's a 0% balance transfer card or nonprofit credit counseling, or really just the fundamentals of finding ways to up that income, cut those. Expenses you really need to make this a priority, so J.
What can someone do if they do have credit card debt? Sometimes it's getting that first step can be the hard part. Yeah, so definitely one thing. I always tell people is to get an emergency fund together because that's what keeps people going back into debt and so that emergency fund. Depending on what your life is like, could be between 500 to $1500. Once you get that done, then it's time to pay down that credit card debt as fast you can.
So like he said, cutting back on things so being able to look at everything in your spending plan line by line and seeing what you can cut back on. Can you cut back on cable? Can you cut back on eating out all that could give you 50 to $100? Extra month you can use to pay down that debt. So now what? If you're the person who realizes that you are in debt and you don't have that savings, you don't have that rainy day fund. What should someone do if they they don't have the ability to pay that off? Yeah, so definitely what he was saying and be able to go to a nonprofit agency to get some help to help pay that down and see what strategies you use but also just take it one step at a time. The best thing that a person has done in that situation and realize they're in the debt and knowing what that exact number is, but then going and saying OK, let me start paying towards it while also added to my savings.
And that's going to help them take some of the financial stress. Offer them and out of their lives. This is probably a question for a lot of people who are credit cards good for. About half of credit cardholders pay their bills in full every month and avoid interest. That's really what we want to shoot for, because that's when credit cards really work for you. Credit cards have much better rewards programs than debit cards, and I would note that credit cards have other advantages, better fraud protections, better buyer protections, things like extended warranties, purchase protection. There are some great things about credit cards. The one bad thing is the average interest rate is 16%. So we really want to aim to be part of that group that's paying in full. If you can do that, then you can get cash back. You can get travel miles then.
Credit cards can really work for you. For someone who might be in a situation where it's a monthly cycle where they pay down a little bit of it. But then they build it back up and then they pay down a little bit of it every month. Would you suggest taking money they have in savings to pay it off completely, but risking the the knowledge that you will not have that that safety net? I think that could be a good strategy given how high credit card rates are. I would say though, that you don't want to put all of your eggs into that debt payoff basket, because one thing that we saw last year was that when times were really tough in the depths of the pandemic, a lot of lenders cut credit limits, so you know if you were using your credit card as your emergency fund. Just realize that that may not always be there in times of need, so I love the idea of paying down credit card debt, but I also think it's really important.
To have some savings, some readily available money so you know what is that threshold. We often talk about three to six months worth of expenses, although that may sound like a lot to a lot of people, so we want to start somewhere you want to start. Maybe by getting that initial 1000 bucks saved away. Or maybe it's that one month of expenses, so I think ultimately the truth is probably somewhere in the middle. You know, maybe. You attack both of these simultaneously where you're trying to pay down your debt, but you're also boosting your savings and realizing that, even if that ultimate destination is hopefully being free from credit card debt and having three to six months worth of expenses. It's also true that. Every dollar you pay down on your credit card is basically a guaranteed return of whatever that interest rate is 1520%, and so you know maybe the kind of thing that you attacked both of these simultaneously. Janae, we've seen some companies recently, especially Walmart, really in the news lately, doing away with their layaway programs, but there are other buy now.
Pay later programs out there. How are they different and which is the best choice for you? Well, all of them are now just charging fees anyway, so they took the layaway which was free, and now they're pretty much jumping into the bowl with everybody else at the Buy now pay later, which also will have fees, and so it's just up to the person I always specially now that the holidays are upon us. I always talk about starting now, like we're in October, so you have almost three months to save up for Christmas holidays if you celebrate it. So start saving $1020 a week right now so you don't even have to worry about. Any kind of fees, any kind of buy now pay later. Just buy what you can with the money you have that you saved and everybody will be pleased with that.
Because guess what? It's really about the holidays and family and not about gifts, right? That's a good reminder for everybody. What would you say are the downfalls to these programs? Is definitely being able not to actually pay it on time, so I before I got into the $50,000 of debt I did the buy now pay later with furniture and so I know this first hand and it was the whole you open up the credit card and you get no interest, no payments for five years. What I didn't know is that at the end of the five years, if I didn't finish paying off the furniture, all the interest is going to be added on to the end.
And so I ended up paying it all. So I that's why I tell people, you know, you have to really be careful with the buy now, pay later, because if you don't. Pay on time. You can end up paying more for what you actually did. I would have paid way more for the furniture than I was supposed to. Ted, when would you say is a good time to apply for a credit card? I think it's a great time to apply when you have a bunch of spending coming up that you can hopefully pay in full. So we talked about how important it is to avoid those high credit card rates. First of all, only chase rewards if you can pay in full, but the reason I say time it around a big spending spike is because most of the best credit card bonus offers will require you to spend a few hundred all the way up to a few $1000 within the first few months. So you want to make sure ideally it's money you would have spent anyway.
And money you can pay off before interest hits. So cards like the chase sapphire preferred for example, they're giving 100,000 bonus points, so those are worth about $1250. You have to spend $4000 in the first three months, so the holidays can actually be a great time to get one of these deals and use that spending that you would have done anyway. Just make sure to pay it off. You also can apply for credit cards that give you 0% promos on balance transfers when you move existing debt or new purchases. It can be a little bit of a slippery slope. I don't want you to overspend, but it can actually really help you pay down existing debt. So for somebody who's currently struggling with debt, we see credit cards on the market that have zero percent terms as long as 21 months, so that's actually a great example of how signing up for a new card and taking advantage of this can be a great way to get out of debt.
You just be careful that you're disciplined about it. I would say don't put anymore purchases on that card, divide how much you owe by the number of months in your zero percent term, and really be disciplined about that. Ted and Jenny. Some great conversation going on one segment down to to go. If you've got questions, text them to us and we will be right back..
