CHARLOTTE, N.C. — With inflation and interest rates digging a hole in many Americans’ wallets, financial experts say 2023 is the year to tackle credit card debt.
Because of rising interest rates, “credit card debt is getting more and more expensive, even more expensive than we've experienced in the last couple years,” money coach Bernadette Joy told WCNC Charlotte.
According to WalletHub, one in three Americans is making financial New Year’s resolutions for 2023. The top resolutions are saving more money, sticking to a budget, and paying down credit card debt.
Joy said the three goals go hand in hand because the first step to paying off debt is to "stash some cash."
“Add up your five most important and basic expenses: Food, health, transportation, utilities, and of course your housing," Joy explained. "And start with trying to save up that one month's worth of those five expenses as your buffer while you're paying down debt.”
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
WalletHub said in its debt study that the average U.S. household has $8,863 in savings but $9,260 in credit card debt. Joy suggested chipping away at what is owed with smaller, more frequent payments.
“Break it down into a smaller amount until it feels reasonable to you that it doesn't feel so overwhelming," Joy added.
Joy expects the stock market to be volatile in 2023. She said knocking out debt will help alleviate stress during a potentially turbulent year.
Contact Julia Kauffman at jkauffman@wcnc.com and follow her on Facebook, Twitter and Instagram.