Some credit card interest rates run even higher at 29.99%. For credit card accounts assessed interest in 2021, the average rate was 16.45%, according to Federal Reserve data. DON’T CARRY A BALANCE ON A HIGH-INTEREST CREDIT CARDĬarrying a large balance on a high-interest credit card makes purchases more expensive. Note, an issuer may run a “ hard inquiry ” on your credit after making this request, an action that can temporarily drop credit scores.ģ. This way, you have some credit available as a last-resort option that supplements an emergency fund. An emergency fund is foolproof, but a credit limit can eventually max out or get slashed at the issuer’s discretion.īefore that happens, request a higher credit limit from issuers when accounts are in good standing. Save what you can - even just $5 per week. Trimming your budget may offer opportunities to save that prevent you from relying on credit cards. If you’re still stretched financially after making changes, consider other options like gig or part-time work, or getting roommates, says Bossler. Prioritize essentials like rent, utilities, food and expenses that help bring in income. The family now dines out and travels less, and the kids are attending a less expensive arts camp.Īs you’re reviewing your credit card statement, consider cutting out unnecessary purchases or unused subscriptions. Weekly family dates at the local coffee shop moved to her patio.
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To balance rising costs, she scaled back in other areas and opted for alternatives. “It’s the difference between him thriving and being in daily pain,” says Senn. Trimming this bill isn’t an option since her husband has lupus and requires an autoimmune protocol diet. Senn’s grocery bill went from $125 per week for a family of six to $225. Business Highlights: GDP data, JetBlue buying Spirit