Paying down credit card debt… - Advantage Credit Union

Contact Us

Visit the Alliance One Network to view over 4,900 ATM locations you can use without getting a foreign surcharge fee.
  • Advantage Credit Union - Ontario Office, 700 Stumbo Road, Ontario, OH
  • Advantage Credit Union - Lexington Avenue Kiosk, 270 Lexington Avenue near Shaw Ott Medical, Mansfield, OH
  • Advantage Credit Union - Ashland Road Kiosk, 860 Ashland Road near Boliantz Hardware, Mansfield, OH
  • Mansfield Municipal Court Building, 30 N. Diamond St. (open during business hours only), Mansfield, OH

Thank you for your interest in Advantage Credit Union. Please let us know how we can serve you.

This field is required
A valid email address is required
This field is required






This field is required



Paying down credit card debt…

Paying down credit card debt…

Paying down credit card debt…

January 8, 2021

Just when you thought 2020 was devoid of good news for Americans – here is a small financial reason to smile! U.S. consumers paid down a record amount of credit card debt this past year.

However, that does not mean American consumers now harbor less credit card debt. According to a report from the Federal Reserve, Americans began 2020 with $1.09 trillion in credit card debt – an all-time high. That number came about from a $76.7 billion net increase during 2019, according to a WalletHub study.

Surprisingly, the global pandemic did not cause a continued dramatic increase of credit card debt. In fact, a downward trend was almost immediate. A slight paydown of consumer credit card data is normal in the first quarter of any year, according to the WalletHub study. However, in the first quarter of 2020 consumers paid down $60 billion in credit card debt – the biggest paydown ever.

The WalletHub study found that consumers continued paying off credit cards throughout 2020. In Q2 and Q3 combined, consumers paid down $58.8 billion more in credit card debt. That is the first time in more than 30 years that credit card debt has dropped from April through September in the U.S.

It is not that Americans stopped using credit cards in 2020, they simply reprioritized their household budgets. According to a Money.com study, 70% of U.S. consumers said they have no plans to cancel or close existing credit cards because of the pandemic. Instead, Americans have begun reducing discretionary spending during the pandemic, taking advantage of lifelines offered through the federal CARES act, like stimulus checks and additional unemployment compensation , to pay down credit card debt.

Whether you are interested in reworking your budget or simply want to reduce debt in 2021, there are a few immediate benefits to lowering credit card debt:

 1. Reduce stress – Finding room in a budget to pay bills on-time can keep a person up at night. Paying down, and eventually, paying off that debt will alleviate additional stress.
2. Start next year debt-free – Beginning a new year with a fresh outlook can be liberating. Set an appointment now to meet with a credit counselor and get the guidance you need to start next year debt-free.
3. Reduce the number of bills you pay – Less bills to pay means your hard-earned money can go toward other things, like saving for a new home, a new car, or a special gift.
4. Take that much needed vacation – Paying down or paying off debt can make taking that trip you have always wanted a guilt-free reward.
5. Pay less interest – Paying your credit card debt down can save you excessive interest payments, reducing the total amount you owe over time.

As you are paying down debt, it is important to remain realistic. While it can be tempting to throw as much money as possible at outstanding credit card debt, it is important to properly budget for daily, weekly, and monthly necessities (food, clothes, rent, etc.). Be realistic about how much you can put toward your credit card debt each month by deploying the helpful tips below.

Tips to paying down credit card debt
Paying off credit card debt can seem daunting – especially if you have compiled quite a bit. Getting out of credit card debt is not a sprint – it is a marathon. With determination and some solid advice, living credit card debt free is possible. Here are some tips from Credit.com to get started in the right direction:

• Get organized – Gather all the information for every card with a balance. Make a list of the amounts, interest rates, due dates, and minimum payment for each card. Add up all the minimum payments on each of your credit cards to determine how much you must pay each month just to stay on top of credit card bills.

• Create a budget – You can follow every tip for paying down credit card debt, but if you are not spending within your means, you will likely settle into the same repetitive cycle. Create a budget that works for you, leaving wiggle room to pay down that credit card debt.

• Paying off the card with the highest APR first – Paying off the highest interest rate first makes the most monetary sense because it cuts out spending on a larger chunk of interest. Try boosting your payments on the card with the highest APR and paying the minimums on the remaining cards. Once that card is paid off, move on to the card with the next highest APR. You may also want to consider transferring your current balance with a higher interest rate to a card with a lower rate. This will save you money and will help you pay off the debt sooner. Ask us how we may be able to help you with this. Our card has a low, fixed rate and no balance transfer fee.

• Paying off the card with the lowest balance first – This method may not make as much monetary sense as paying off the highest interest rate card first. However, this may be a method that is easier to stick to for those who have a difficult time staying motivated without quick gratification. Enjoy the endorphins that come from paying off that lowest balance – then keep paying off from there!

 

« Back to General News Releases
ADVANTAGE CREDIT UNION,  INC.
Physical Address:
700 Stumbo Rd.
Ontario, OH 44906
Mailing Address:
P.O. Box 2674
Mansfield, OH 44906

Phone: (419) 529-5603
Fax: (419) 529-5068

Hours of Operation:
Monday-Friday: 8 AM-5 PM
(Lobby & Drive-Thru)
Saturday: 9 AM-1 PM
(Drive-Thru Only)

Follow us on:
FACEBOOK, advantage credit union
Copyright © 2021 Advantage Credit Union. All rights reserved.

fall, leaves, savings, spend, advantage credit union
Autumn Announcements

Happy 60th Anniversary Advantage!


~HEALTHCARE HERO SPA GIVEAWAY

Recommend your Hero on our website for a chance to win a Spa Day package valued at $250

~$500 OFF CLOSING COSTS ON A NEW MORTGAGE OR REFINANCE
Apply online or meet with one of our mortgage loan specialists for a free pre-approval through 2021.

~START A FREE SAVINGS ACCOUNT AND GET LIFETIME MEMBERSHIP
All who live, work, go to church or school in Richland County.

~SECURE CHECKING with IDENTITY THEFT PROTECTION
Protect and monitor yourself and eligible family members.

~EARN AN ENTRY FOR A $60 GIFT CARD GIVEAWAY
MEMBERS WHO LIKE OUR FB PAGE + MAKE A REVIEW @ https://www.facebook.com/AdvantageCreditUnion

~OPEN A PLATINUM VISA AND GET $60 CASH CREDIT
You deserve a low fixed-rate with no annual or balance transfer fees, plus earn rewards. Apply online.

~GET AN EXTENDED VEHICLE SERVICE CONTRACT FREE QUOTE
Protect yourself against unexpected high costs of vehicle repairs.

~ ADVANTAGE CREDIT UNION MASTERCARD® GIFT CARDS
Don’t wait until last minute to shop this holiday season. 

~ALL MEMBERS GET FREE $2,500 ACCIDENTIAL DEATH & DISMEMBERMENT COVERAGE
Plus, members 18 and older can register for an additional $2,000 worth of coverage

Making You #1 since 1961!