Prior to the Great Recession, people were saving more money and readily paying off their debts, but because the economy has improved in recent years, there is less worry and more spending.
An increase in spending does boost the economy, but people are finding themselves deeper in a financial hole. Over the last few years, credit card debt has risen in the United States, late payments are more prevalent, and there has been an uptick in credit card procurement.
In the first quarter of 2019, the national individual average credit card debt was more than $6,000. In West Virginia, it was just over$5,000.
Overall credit card debt hit eight hundred seven billion dollars in the first quarter of 2019.
We spoke with a financial management director at The Monteverde Group for advice on what we can do.
Managing Director, Jason Haswell, advises,” If you don’t have the money to buy something, save to do it, or put it on your credit card, and make sure you’re paying it off over a quick period of time. Just be prudent with your finances. We always recommend six months of emergency fund in case something goes wrong or you lose your job or a major catastrophe happens at your house.”
With piling student loans and rent payments, we all know it’s easier said than done; but, it is essential not to fall behind on credit card bills. Not only is it difficult to be approved for a loan on a mortgage or car –bad credit can even affect getting a job; employers now review credit score for potential job candidates.
Always try to avoid accruing more before paying existing debt. That way, you can raise your credit score and be regarded as a good borrower, which can bolster your financial future.