Do it Yourself
- UpdatedDec 20, 2024
- If you can afford to pay your credit cards down faster, you may be able to solve your debt problems yourself.
- You'll pay the entire balance owed with no concessions from creditors.
- Your credit rating should improve as you lower your balances.
It’s true: making your minimum payments keeps you looking decent on paper. You avoid late fees, aren’t reported to the credit bureaus as delinquent, and therefore don’t have to worry about hurting your credit score. So what’s the catch? Interest. You pay a very, very heavy price for making only your minimum payments.
Minimum payments are how credit card companies make money from you. When you make only the minimum payment, a significant portion of your payment goes towards your interest or finance charges.
If you are struggling to make ends meet and only paying the minimum on your accounts, it may feel like your balances never come down. Fees and interest accumulate quickly and you may even end up paying way more than you originally owed. Not to mention, it could literally take you decades to pay off. If you’re struggling with debt, it may be time to seek help.
There are online tools and resources that can help you calculate how much you’d need to pay each month to save on interest and pay off the debt by a certain date. You can find out different strategies for how to get out of debt by yourself. But if you are already struggling to pay the minimum on your accounts, these strategies may not be successful for you.
Instead, debt resolution may be a better option. The way the Freedom Debt Relief program is structured, your monthly program deposits could be lower than your current minimum payments. That means you could be working to resolve your debt while actually saving money each month.
To see if you qualify, call a Certified Debt Consultant at Freedom Debt Relief now at 800-910-0065.
Debt relief stats and trends
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during November 2024. The data uncovers various trends and statistics about people seeking debt help.
Credit card tradelines and debt relief
Ever wondered how many credit card accounts people have before seeking debt relief?
In November 2024, people seeking debt relief had some interesting trends in their credit card tradelines:
The average number of open tradelines was 14.
The average number of total tradelines was 24.
The average number of credit card tradelines was 7.
The average balance of credit card tradelines was $15,142.
Having many credit card accounts can complicate financial management. Especially when balances are high. If you’re feeling overwhelmed by the number of credit cards and the debt on them, know that you’re not alone. Seeking help can simplify your finances and put you on the path to recovery.
Credit card debt - average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average credit card debt for those with a balance was $6,021. The percentage of families with credit card debt was 45%. (Note: It used 2022 data).
Unsurprisingly, the level of credit card debt among those seeking debt relief was much higher. According to November 2024 data, 88% of the debt relief seekers had a credit card balance. The average credit card balance was $15,618.
Here's a quick look at the top five states based on average credit card balance.
| State | Average credit card balance | Average # of open credit card tradelines | Average credit limit | Average Credit Utilization |
|---|---|---|---|---|
| District of Columbia | $16,967 | 7 | $24,102 | 121% |
| Arkansas | $12,989 | 9 | $28,791 | 83% |
| Tennessee | $13,822 | 9 | $27,261 | 82% |
| New Mexico | $11,860 | 8 | $25,731 | 82% |
| Kentucky | $12,834 | 8 | $26,156 | 81% |
The statistics are based on all debt relief seekers with a credit card balance over $0.
Are you starting to navigate your finances? Or planning for your retirement? These insights can help you make informed choices. They can help you work toward financial stability and security.
Regain Financial Freedom
Seeking debt relief can be the first step toward financial freedom. Are you struggling with debt? Explore options for debt relief to regain control of your finances. It doesn't matter how old you are or what your FICO score or credit utilization is. Take the first step towards a brighter financial future today.
Show source
Personal Finance
Debt Solutions
