This Spike Is Bad News For Credit Card Holders In New York State
You don’t need me to tell you that 2022 has been a year of brutal inflation. I can’t tell you how relieved I was to see gas prices here in Upstate New York fall back down into the $3.80s this week. From gas to groceries to housing, Americans are more worried about their finances than they have been since the Great Recession.
On top of all the money woes going around, now New York credit card holders are getting more bad news. If you’re feeling an urge to charge your next payment, you may want to read this first.
According to US Census Bureau, Federal Reserve, and TransUnion data collected by WalletHub, New York has had the fourth largest overall credit card debt increase by state over the past year. As a matter of fact, credit card debt in America rose by more than $67 billion between April 1 and June 30, alone.
New York’s average household credit card debt is now $8,214, and increase of $561 since 2021. As a state, New Yorkers owe $4.6 billion more to credit card companies than this time last year. California leads the nation in increase, with a staggering total state debt of $120 billion. Our neighbor to the east has the least credit card debt growth, with Vermont owing a little over $2 billion.
How To Beat Back Credit Card Debt
Here are three top tips that WalletHub offers to rein in credit card debt:
Stick to a Budget
Figure out how much you’re making and spending each month and exactly where all your money is going. From there, rank the importance of expenses to make sure you get the most from your budget. Knowing what you spend money on can also help you identify and cut out things you don’t use, like a streaming service you never watch.
Start an Emergency Fund
Gradually set aside some cash each paycheck until you have a few months’ worth of income set aside. The goal is to build a cash cushion for unexpected expenses that pop up
Tackle The Most Expensive Debt First
If you owe on multiple credit cards and one has a higher interest rate than your others, focus on putting more of your budget to paying that one off first. Once you’re debt-free on that card, move to the next and repeat.