A Way Out of the Credit Card Debt Maze
More than 40 percent of U.S. households carry credit card debt, at an average interest rate of around 16 percent. A person with $10,000 of debt at a 16 percent interest rate would have a minimum monthly payment of about $233. If that person paid only the minimum, it would take 338 months—or 28 years!—to be debt-free, and they would have paid $12,793 in interest.
Don’t let that scenario be your financial future. A debt management plan (DMP) from a nonprofit agency is one of the safest ways to avoid this credit quagmire. Cambridge Credit’s DMP reduces its clients’ interest rates from 22 percent to 8 percent on average, and clients are typically debt-free in just 48 months.
A free debt analysis from a certified counselor can put you on the right path to potentially saving thousands of dollars in interest payments and decades of high monthly payments. Contact Cambridge to find out how much you can save and how quickly you can become free of debt. Call 888/842-8993 or visit cambridge-credit.org/AAA.
This article originally appeared in the May/June 2019 edition of AAA World.