![]() ![]() To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. The Forbes Advisor editorial team is independent and objective. These reminders could make it easier to stay on top of your spending goals and to deal with any unauthorized credit card transactions if they occur. Your card issuer may allow you to set alerts when your due date is approaching, when your balance exceeds a certain amount, or when a large purchase occurs. Another helpful way to avoid credit card debt (and to protect yourself in other ways) is to set up text and email alerts on your account. (Tip: Always confirm the payment processes each month to be safe. And if you’re comfortable doing so, setting up an automatic payment for the full statement balance could help you avoid paying interest on the account. You can schedule auto pay for at least the minimum amount due as a safeguard. However, most credit card companies will let you schedule automatic payments so you never have to worry about missing a due date. One of the biggest mistakes you can make where your credit cards are concerned is paying your bill late. A simple budget can help curb overspending as you enjoy the rewards, perks, and convenience your credit cards have to offer. To avoid these issues, consider using a budgeting app to plan and track your spending. ![]() A high credit card utilization ratio could also hurt your credit score. If you revolve a balance from one month to the next, you’ll owe costly interest charges to your credit card issuer (unless you’re taking advantage of a 0% APR credit card offer). When you use a credit card, it’s important not to spend more than you can afford to pay off in a given billing cycle. Establish responsible spending habits.Below are three tips that can help you handle your credit cards like a pro to get the most out of your accounts without paying expensive interest charges or damaging your credit score. However, because so many business owners use personal credit cards to finance their business expenses, it’s difficult to estimate the true average credit card debt that small businesses carry on a month-to-month basis.Ĭredit cards can offer many valuable benefits when you use them in a responsible manner. Another study from JPMorgan Chase Institute found that among businesses that didn’t pay off their credit card bill in full each month, the median revolving balance was around $7,000 in 2022. Furthermore, only 20% have a separate small business credit card available to use for their companies.Ī 2023 Forbes Advisor study found that 46% of small business owners that used credit cards as a primary source of business financing did not consistently pay off their monthly balances in full. According to Hello Alice, 61% of small business owners who have a personal credit card use it to pay for business-related expenses. ![]() However, a sizable portion of small businesses also use personal credit cards to fund their business. Many small businesses rely on credit cards as a source of capital. When higher credit card debt levels meet higher interest rates, it can place a heavy financial strain on the budgets of many consumers. And the interest rates on certain types of credit cards may be higher than average. The average credit card interest rate on accounts with balances that assessed interest was 22.77% in August 2023, according to the Federal Reserve. When the Federal Reserve hikes interest rates, as it has numerous times since 2022 to fight inflation, credit card interest rates tend to climb in response. The recent changes in credit card debt are especially troublesome in light of current interest rates. However, according to recent numbers put out by Transunion, this figure rose from $5,474 in Q3 2022 to $6,088 in Q3 2023. The Federal Reserve study does not provide numbers for the average credit card balance per consumer. According to Q3 data released by the Federal Reserve, credit card balances rose by 4.7%-a $48 billion increase-to a high of $1.08 trillion. With national credit card debt numbers on the rise, it’s no surprise that individual credit card debt increased in 2023 as well. ![]()
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