So unless you’re expecting a windfall from a long-lost relative (who probably didn’t talk about money either), it’s up to you to come up with a game plan to manage your finances.Committing a portion of every salary increase to paying down credit cards and personal loans is the obvious solution, but it isn’t the only option.The average American household carrying a credit card balance has over ,000 in debt, but you sure wouldn’t know it.People talk all day long about their workouts, favorite apps, and their love lives, but bring up the subject of money, especially credit card debt, and suddenly everyone clams up.“Money is the last taboo subject,” said So Fi Chief Operating Officer Joanne Bradford in a May episode of the Digiday podcast. They’re uncomfortable with talking about how much they make, how much they save, what they can do with it.”According to the American Psychological Association’s latest “Stress In America” report, money is the number one cause of stress—ahead of work, family, and health concerns.Your credit scores can take a hit if you use all or most of the available credit on your cards.
In addition to paying off your balance before the rate increases, you’ll want to avoid making further charges.
Knowing your credit profile before you apply can help set expectations.
Several personal finance websites, including Nerd Wallet, offer free access to your credit score and credit report.
With a debt consolidation loan, a lender issues a single personal loan that you use to pay off other debts, such as balances on high-interest credit cards.
You’ll pay fixed, monthly installments to the lender for a set time period, typically two to five years.