For the first time, credit card debt balances surpassed the $1 trillion mark, the New York Federal Reserve Bank reported this week.
The number of credit card accounts expanded by 5.48 million to 578.35 million. Credit card debt and auto loans drove overall household debt levels up 1%, to $17.06 trillion for the quarter, according to the report. The news comes as interest rates are at their peak. Bankrate.com reported variable credit card interest rates at 20.6% during the first week of August.
What can you do to cut down credit card debt as interest rates rise? Here are seven tips from Nationwide Mutual Insurance Company to pay them off as quickly as possible. If you need help paying off your credit cards, the first step is to completely stop using them. Credit cards are simple to use, and simple to overspend without really thinking about it. Gather all your credit card information for all the credit and store cards you have.