Master Your Credit Card and Take Control of Your Finances

According to Experian's report on 2022 credit card balances in the US surged 13.2% year-on-year for alarming 13.2% rise - further compounded by rising credit card interest rates caused by changes to the Federal Reserve funds rate (which had an influence on rising rates). At present, consumers with debt are facing an average interest rate of 20.92% as of February 2023 - this represents a notable jump from 16.65% recorded during 2022's second quarter.

But amid these daunting statistics lies hope: consumers have the power to harness credit cards responsibly and avoid succumbing to exorbitant interest rates. Here are some key tips to help take charge of your credit cards this year:

Plan Purchases Strategically

With sky-high interest rates currently affecting us all, it is wise to use credit cards wisely. Instead of accruing excessive balances and hoping you'll manage them later, reserve credit card usage only for purchases you can cover with funds from your bank account - making monthly payments offset any potential effects from skyrocketing interest rates.

If you have a serious financial burden due to credit card debt, call Cash Tracks Financial Colorado Springs at (719) 359-8789 for fast friendly, and professional help. We offer Financial Consulting and Financial Planning services and we have 30+ years experience. As an Enrolled Agent, licensed by the IRS, we are familiar with a wide array of financial issues including debt reduction and IRS tax audits. Contact us today so we can get started helping you.

Consolidate High-Interest Debts

One effective strategy to help alleviate high-interest rates is consolidating existing credit card debt with a 0% balance transfer credit card. Many cards offer this grace period of no interest on balance transfers or purchases for up to 21 months, enabling you to pay down your balance without incurring interest and saving both time and money in the process.

Increase Reward Programs

If you are still using an outdated credit card or have not looked into upgrades recently, you could be missing out on potentially valuable rewards. Modern cards provide attractive perks such as earning up to 2% cash back without annual fees, or perhaps travel rewards can be more appealing; although be mindful that certain reward credit cards might have higher interest rates than traditional credit cards!

Unlock Hidden Benefits

Spend some time learning about the lesser-known benefits associated with your credit card. Depending on its issuer, additional perks could include purchase protection against damage or theft, extended warranties for items with existing manufacturer warranties, or travel insurance coverage - familiarizing yourself with these perks beforehand allows you to make use of them effectively when the need arises.

Credit cards provide many enticing features to improve financial well-being, but it's essential to be mindful that their use could either benefit or harm. The best way to secure financial security is through using your card responsibly and taking charge of its usage before it takes control over you.

By adopting these practical techniques, you can navigate the credit card landscape with confidence and financial savvy. Always keep in mind that credit cards should serve as tools to assist rather than trap you in debt; practice responsible credit card usage to secure your financial future free from high-interest debt.