3 important credit card debt relief moves to make this November

The financial strain on American households has reached a critical point, with recent CivicScience consumer polling revealing a troubling trend: Over 40% of Americans now rely on credit cards to bridge the gap between their income and monthly expenses. After covering essential costs like rent or mortgage payments, car payments and childcare, these households are now turning to plastic just to make ends meet.

The situation becomes even more concerning considering that 25% of those polled reported taking on credit card debt in the past month specifically to afford the basic necessities, like gas, groceries and other everyday essentials. Perhaps most alarming, though, is that 16% of Americans indicate this isn't a temporary solution but rather a monthly occurrence, suggesting a chronic reliance on credit cards at a time when the average credit card interest rate sits above 23%, making it one of the most expensive borrowing options available today.

While increasing dependence on credit cards might seem like a practical short-term solution, it's a financial strategy that could lead to long-term problems. At today's rates, your credit card debt can compound quickly due to the interest charges alone — and if you continue to use your cards for essentials, it can become an even bigger issue. So for those currently utilizing credit cards to cover basic expenses, it's crucial to prioritize debt reduction this month before the situation becomes unmanageable.

Find out what your debt relief options are now.

3 important credit card debt relief moves to make this November

Tackling your high-rate credit card debt this November starts by taking these crucial steps:

Determine how much your credit card debt is costing you

The first step in addressing your credit card debt is understanding exactly how much it's costing you and how it affects your budget. Reviewing your credit card statements, interest rates and fees can provide insight into how much of your monthly budget is being spent on debt payments. Many people aren't fully aware of how much they pay each month in interest alone, so this November, take time to sit down and assess your total credit card debt and calculate the cost of making only minimum payments.

As you calculate the costs, using online calculators or financial apps can help you estimate how long it will take to pay off your debt based on your current payment strategy. For example, you may find that if you're only paying the minimum, it could take years' worth of time and thousands of dollars in interest charges to clear your balance. This knowledge can help you make informed decisions about what type of debt relief approach will work best for your situation and can motivate you to take proactive steps to avoid paying more interest than you need to.

Start tackling your expensive credit card debt today.

Compare your debt relief options

Once you understand the scope of your debt, it's time to explore your debt relief options. Some strategies can help, depending on your financial situation, goals and the level of debt you're carrying. One common approach is debt consolidation, where you combine multiple credit card balances into a single loan with a lower interest rate. This can reduce your monthly payments and simplify your finances, as you'll only have one payment to manage each month. 

Debt management plans can also be an effective option. With a debt management plan, a credit counseling agency negotiates with creditors on your behalf, potentially lowering your interest rates and creating a structured payment plan to eliminate your debt in a set timeframe. These plans are helpful for those struggling to make payments, but they often require a long-term commitment and you may be required to close your accounts.

For those with significant financial hardship, credit card debt forgiveness may be a viable option. Debt forgiveness typically involves working with a debt relief company to negotiate with your creditors, aiming to settle your debts for less than the full amount owed. This approach can reduce the overall amount of your debt, but it does have some potential drawbacks, including a negative impact on your credit score. 

Get started on your plan ASAP

The most expensive mistake you can make with credit card debt is delay. Every month you wait to take action, your debt can grow due to:

• Compound interest working against you
• Late fees if you miss payments
• Potential penalty APRs that can push your interest rate even higher
• The risk of maxing out your cards and damaging your credit score

Start implementing your chosen debt relief strategy now, even if it means starting small. Create a realistic budget that prioritizes debt repayment while maintaining essential expenses. Consider ways to increase your income, and most importantly, commit to stopping the cycle of using credit cards for regular expenses unless you can pay the balance in full each month.

The bottom line

This November, consider committing to reduce your credit card debt. While it may feel overwhelming, breaking it down into manageable steps can bring you closer to financial freedom and help you avoid the costly cycle of credit card debt. As you take these steps, remember that each payment made brings you closer to a debt-free life and greater financial peace.