TULSA, Okla. — Racking up credit card debt can leave folks feeling ashamed. Digging out can leave you feeling overwhelmed.
Looking at a big stack of credit card bills can lead to anxiety over how to pay off all the debt.
Financial analyst Ted Rossman with Bankrate said, "We found that more than 4 in 10 Americans say that money is negatively impacting their mental health."
He said the findings of another survey point to the worries associated with credit card debt.
"We found that more than 6 in 10 people with credit card debt have delayed or avoided other financial decisions because of that debt."
High credit card debt can leave people feeling ashamed.
"There is definitely a stigma with debt," said Rossman. "The truth is, most people with credit card debt got there for practical reasons. The number one cause, an emergency expense like a medical bill or car repair. The number two cause is just day-to-day expenses. So, I would urge people to get over some of the shame."
Instead of feeling bad, prioritize paying off the debt.
If your credit score is in the neighborhood of 700 or above, consider transferring your credit card debt onto a 0% credit card. This can give you up to two years to pay off the debt without adding more interest to the total.
"Credit limits on these top out at 4, 5, $6,000," said Rossman. "If you have $10,000 in credit card debt you might not have enough room on your balance transfer card."
Another option is to take out a personal debt consolidation loan with your bank or credit union. Paying 6% or 7% interest for that is still cheaper than letting your balance sit on the credit card racking up 20% or more in interest charges each month.
You may also want to consider working with a non-profit credit counseling service. This can usually be done by phone or video chat for a very small cost.
When searching for one, Rossman recommends checking to see if it is a member of theNational Foundation for Credit Counseling.
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