5 tricks to repay mounting debt | Cash Good

If you’re having trouble getting your bills off, here are a few tips that might help you.

SAN ANTONIO – If you are heavily in debt, you are not alone.

US household debt hit a record high of $ 15 trillion in the second quarter of 2021, according to the latest report.

The latest quarterly report on the debt and creditworthiness of households in the Federal Reserve Bank of New York says total household debt rose 2.1% to hit $ 14.96 trillion. The report shows that mortgage debt was the largest contributor. Auto loans and loan spending also contributed to the increase.

If you’re struggling to get your bills off, here are five tips that might help.

“A lot of people think that you should cash out your highest-interest credit cards first, but psychologically, I think it’s best to get some out of the way. If you have five or six credit cards, and one of them is very small, pay it off first because mentally you feel like you can accomplish something by getting rid of one credit card, ”said Karl Eggerss, Senior Wealth Advisor and Partner at Federation.


“If you can call the institution to try to get a lower rate, I’d advise. If not, you can actually transfer this balance to another credit card on an introductory course. Maybe zero percent or six months or even a year. You’re trying to buy yourself time while you pay for it, ”advised Eggerss.


“If you only pay the minimum, you will never pay them off. So make sure you cut the spending elsewhere to pay for that credit card, ”he said.

“Sell things that you no longer need in your house and literally put the money on your credit card,” advised Eggerss.

“You need to know what money is coming in and what is coming out. When it comes to spending too much, you will never get anywhere with these credit cards and it will continue to be a problem. In terms of interest rates, it is getting bigger and bigger and could lead to bankruptcy, ”suspects Eggerss.