It seems like every week, we break a new record for the highest average American credit card debt. Credit cards are tools that can make or break our finances and while we know the dangers of overuse, sometimes there are no other options. More Americans are using their credit cards like cash than ever and it comes down to two factors: Interest rates and inflation. 

Lendah has helped thousands of customers pay off their credit card debt since 2018. With a firm understanding of credit card debt, the team at Lendah can guide their customers through financial uncertainty – including helping them to understand how inflation and interest rates are affecting credit card debt holders.    

Why is The Average American Credit Card Debt So High?

A major factor in the increase in American credit card usage is due to inflation rates rising exponentially. Consumers are paying for basic goods like groceries and gas with their credit cards because salaries can’t keep up with the rising prices. According to an article from Forbes, in the third quarter of 2022, the average American credit card debt per borrower was about $617 higher than in quarter two. “This adds up to $38 billion in new debt in a single quarter and represents a 15% increase year-over-year—the largest change in two decades.” In addition to this issue, interest rates are rising too and that credit card debt is getting more and more expensive to carry.

Not only has the Federal Reserve increased interest rates, but creditors are also marking up rates in addition to what the Federal Reserve has set. With interest rates as high as 22.15%, those relying on their credit cards to pay for necessities will potentially find themselves in a debt hole that won’t be easy to get out of. 

How do you avoid the disastrous effects of credit card debt while fighting with rising prices on the things you need? 

Tips For Saving Costs Amidst Inflation

We are all feeling the sting of inflation. Here are some tips to help you save money and avoid having to use your credit cards.

1. Evaluate Your Budget 

Now, more than ever, a simple and realistic budget can help you make smarter financial decisions. If your current budget isn’t serving you, reevaluate and look for places you can cut costs. You can also look into budgeting apps to help you stay on track. 

2. Go Where the Deals Are

Be strategic in your shopping. By comparing prices between stores and searching for deals you will have more opportunities to save money on the essentials. Be sure to also check out local farmers’ markets and pop-up stands for fresh fruits and vegetables – you will often find higher quality produce for a cheaper price. 

3. Get a Side Hustle

Several people face the reality that their 9-5 salary isn’t cutting it. If you’re one of those people, try picking up a side hustle to bring in some extra cash. A few examples are food delivery services, running an Etsy shop, or becoming a makeup artist. Jobs like these can be done on your schedule and boost your monthly income.

4. Consolidate Your Credit Card Debt

Multiple credit cards mean multiple payments a month. You can cut down those payments to one with a debt consolidation program. It will save you time, and money, and leave more room in your budget to keep up with inflation prices.   

While we don’t have a lot of control over what’s happening with our economy, we do have the ability to focus on our financial situations and find ways to make it through difficult times. You don’t have to go through the hard times by yourself. Lendah offers debt consolidation loan programs designed to help you get out of debt and stay there. 

Debt Consolidation Loans From Lendah

With the rise in interest rates, getting out of debt should be a priority for everyone because it’s going to become increasingly difficult to pay off your debt. Utilizing personal loans for credit card debt is one of the best ways to start your journey to debt freedom. With Lendah, a debt consolidation program is simple. 

Because there are over 30 lenders in their network, a debt consolidation loan is easier to obtain. Once you have that loan, you use it to pay off your existing credit card debt. You will have one, fixed payment each month making it easier to budget and you can save thousands in interest charges. Lendah offers rates as low as 5.99% and pre-approvals up to $35,000. 

With the help of the financial experts at Lendah, you pay off your high-interest credit card debt and discover the tips and tricks you need to stay on the right financial path. 
To find the best personal loan for you and help lower the average American credit card debt, visit our website and fill out a form to get started!