Credit card debt 101

If it is credit card debt. I've heard that apps like Tally are really helpful.
More info:
https://www.meettally.com/

I have a credit card with 300$ I am trying to keep a balance of 175$ because your credit score will go up I was told that U should not go over then half of your credit line.

To @Vittorio G

I have a credit card with 300$ I am trying to keep a balance of 175$ because your credit score will go up I was told that U should not go over then half of your credit line.

Well I've heard it's under 30%. So you may want to double check.

Also that's a credit utilization ratio meaning you shouldn't be using more than 30%. With your example that would mean not spending over $90. I just wanted to clarify that it is a credit utilization ratio and not a balance. I would hope you're not trying to keep a balance on your card and paying fees. Credit cards are best if they are paid off completely at the end of every billing cycle.

Be responsible low arp and pay off quick

Stay under 30% of the credit line on your credit cards.

One of the articles on this website mentioned using Powerpay.org to help you schedule debt snowball payments on existing credit card debts. It's a free site managed by a college in Utah, and it's so helpful having a plan and working it slowly!

pay it off each month!!!

Credit card debt should be avoided as it tends to be at a high interest rate. Also having credit card debt which you cannot pay off each month is a sign you are living above your means. If your credit card debt is too high to pay off in one month you may need to start a plan to pay them off. Additionally you may need to look at your budget to see if you have a possible spending issue or an income shortfall.

I think the whole Credit Score thing is a scam to get people into debt. If you save for what you need, you won't have to worry about interest rates because you won't be borrowing money.

Now, I know that is an ideal world…

But, if you have some revolving credit (credit cards), some installment credit (student loan, car note, mortgage), and you pay your bills on time every month, your Credit Score will go up.

You won't be able to get a 'perfect' credit score unless you carry a balance to show you can handle your credit utilization. I'd rather be debt free and not be paying interest than have a 'perfect' credit score.

Thanks to covid we have tons of credit card debt an idk how well ever pay it all off :(

How did COVID cause credit debt?

I agree that it was a great way.

Debt is hard to get out of.

I have been using balance transfers to 0% interest introductory rates to help me pay more on my credit card debt

Everytime I start getting my credit card total down, something comes up and it goes back up again

Mark, it’s the same with me. I will be on schedule to pay off my credit cards only to have a issue and have to use one to take care of it. With this pandemic and unemployment it’s harder to pay off bills with minor instances happening.

I have been using balance transfers to 0% interest introductory rates to help me pay more on my credit card debt

Have you used more than one balance transfer credit card?

Agree. I believe it is recommended (and just smart) to pay off your balance in full every month. If you can't do that, then you're spending too much on your card!

I just wish interest rates weren't so fixed an brutal. Creditors don't seem to be willing to do goodwill adjustments even if your credit score is better and you have a good payment history. :/

Paying off credit cards is important

My goal is to pay off my debt from hospitals, treatment centers, and emergency room visits….

"Credit cards are for emergencies" is one of the biggest lies the financial industry has ever taught us. Savings accounts are for emergencies, credit cards are for building credit. They can also be leveraged as well as earn you money. You would not believe what I earn in cashback and bonuses every year. They are by far one of the most powerful financial tools in my arsenal. The key is NEVER using them to buy things you don't already have the cash in hand for.

"Credit cards are for emergencies" is one of the biggest lies the financial industry has ever taught us. Savings accounts are for emergencies, credit cards are for building credit. They can also be leveraged as well as earn you money. You would not believe what I earn in cashback and bonuses every year. They are by far one of the most powerful financial tools in my arsenal. The key is NEVER using them to buy things you don't already have the cash in hand for.

Shaina,
Say it louder for the people in the back… this is the best explanation of using credit that I have seen. You are spot on.

"Credit cards are for emergencies" is one of the biggest lies the financial industry has ever taught us. Savings accounts are for emergencies, credit cards are for building credit. They can also be leveraged as well as earn you money. You would not believe what I earn in cashback and bonuses every year. They are by far one of the most powerful financial tools in my arsenal. The key is NEVER using them to buy things you don't already have the cash in hand for.

I'm earning cashback on a biz and a personal credit card but have never tried for bonuses. Does this involve opening a lot of new cc accounts? I'm intrigued by this "You would not believe what I earn in cashback and bonuses every year."

I've had no credit all this time. I finally got my FIRST credit card through my bank yesterday with a $2000 limit! The first time I tried for a credit card was about a year ago with no success. During that time worked on my credit score. I was pre-qualified for 3 different credit cards. My banker was so proud of me, and I was happy. I'm going to keep working on my credit score, and not going over 30% of my credit limit.