Credit card debt reaching “crisis point” for Coloradans this holiday season

By Mekialaya White

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    COLORADO (KCNC) — Many Coloradans are busy being Santa’s elves, purchasing and furiously wrapping last-minute gifts for their loved ones. However, holiday purchases can rack up quickly, adding to the increasing nationwide card debt problem.

“The financial burden on credit cards has reached a crisis point,” said Roger Reynolds, CEO of Reynolds Financial Group. “Recent studies have shown that over 40% of American households are using credit cards to help supplement their monthly expenses. About 25% are using them within the last month and 16% of Americans have actually been using credit cards to help pay their bills month in, month out.”

Credit debts are one of the most expensive loan options out there, according to Reynolds.

“The average credit card interest rate is over 23% per year,” he added.

Despite that, there are ways to keep yourself out of financial trouble and break free. First, Reynolds said, look at the fine print.

“Look at your statement know what you’re paying in interest. See how it’s impacting your budget. Also, if you’re making the minimum payment on a credit card, that’s a problem. It can take years to catch up and thousands of dollars in interest to clear your balance.”

Reynolds said there are other options available for those struggling with credit card debt.

“Debt consolidation. You can look at another loan. If you can, find another loan, with a much lower interest rate where you can consolidate those credit cards into one. That can simplify and lower your monthly payment,” said Reynolds.

For those with significant financial hardship, credit card forgiveness may also be an option.

Reynolds’ biggest piece of advice is to set a budget strategy and implement it ASAP. “If we don’t, that burden will be with us for years to come.”

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