The personal finance industry is chock-full of questions we’d rather not answer, as they’re often indicative of a struggling situation. We at Lendah assure you that no question is too shameful to ask when it comes to credit card debt.
Do you want to know whether your current debts are manageable? Are confused as to what a “good” credit score is, or simply want some actionable advice on reducing your debts. Read on for some input and insights from our team of vetted debt consolidation experts.
How Much is Too Much Credit Card Debt?
The answer to this question is highly subjective, so there’s no blanket number that can apply to all of us. Instead, take a look at these signals to determine whether your credit card debt is out of hand.
Do you have a high debt-to-income ratio? Perhaps you’re struggling to make your minimum card payments, or simply use too much credit? If so, you may have too much credit card debt. You can calculate your debt-to-income ratio by taking the sum of your monthly debt and dividing it by your gross monthly income. If the resulting number is too high, identify and nullify any excess spending habits to make sure you’re not maxing out any credit accounts. These situations are only exacerbated when you borrow money to pay off monthly bills. This is another sign of high credit card debt, as it repeats the cycle of repayment. You can also identify a credit struggle if your payments are higher than all your other bills put together.
What is a Good Credit Score?
FICO scores can range from 300 to 850, with scores above 670 considered to be “good.” A score between 580 and 669 is seen as “fair.” “Very good” credit is fulfilled with a credit score between 740 and 799. Most people fall within the 600 and 750 range. If your credit score reaches or exceeds 800, then you’re in excellent condition. FICO also distributes industry-specific credit scores with different ranges. Generally, “good” scores fall between 670 and 739. Be sure to keep track of your payment history, credit usage, and recent activity to see what could be negatively affecting your credit score.
Related: How To Get A Loan With Bad Credit
How to Start Paying Off Credit Card Debt
Start chipping away at stress-inducing debt by making a handful of tweaks to your financial habits. You can also adjust your lifestyle by strict budgeting and selling unused products or household items can help. and starting a “side hustle” are simple steps with nearly immediate results. You could also strategize your debt payments so that your highest bills are paid first, along with paying more than the minimum balance before each closing date. This ensures that interest for more expensive debts doesn’t accrue anymore than it has to; another benefit is that exceeding the minimum balance actually reduces your credit card debt rather than just maintaining it. Furthermore, debt consolidation specialists such as the team at Lendah are trained in matching you with the most appropriate loan option.
If you have questions about debt consolidation loans for credit card debt, speak to our team of knowledgeable professionals. Our compassionate loan matchmakers will find the best unsecured loans with terms tailored to your unique situation, fast approval and rates starting as low as 3.84% for amounts up to $100,000.
Get started today on our website. Prefer to talk in person? Call us at 833-453-6324 and we’ll get you connected immediately with one of our loan experts.