SAN DIEGO (KGTV) — As the price for just about everything goes up, you may be tempted to swipe that credit card to pay for your items.
You’re not alone.
Credit card debt in the United States is more than $1.2 trillion, according to data from the Federal Reserve Bank of New York.
Stewart, who lives in San Diego County and only wanted to use his first name for this story, admitted his debt was getting out of control.
“I was running up between several different credit cards and I just didn’t notice what that level of debt was,” Stewart said.
He did a tally one day and discovered his debt added up to $46,000.
“I was constantly trying to pay it off … and it just wasn’t going anywhere,” Stewart said.
He ended up seeking the help of nonprofit Money Management International, which helps with debt management.
“If you're feeling financially stressed, if you're not sure how you're going to make ends meet, if you're afraid of falling behind with your creditors, or if you've started to fall behind on your creditors, that's a really good time to reach out for help,” said Thomas Nitzsche with MMI.
Nitzsche said the nonprofit has seen a couple of disturbing trends lately.
“One is the increase in the number of people seeking debt relief help from us. The second is the average level of debt that they're carrying at the time that they contact us, which has increased from about $20,000 a couple of years ago to almost $30,000 now,” Nitchze said.
Nitzsche suggests if there is an issue you can’t handle alone, you can reach out to nonprofit organizations like MMI.
He advises people in a situation like Stewart to create a budget, figure out short- and long-term goals and try to reduce the amount of interest you owe by paying whatever you can over the minimum payment.
Stewart signed an agreement to work with MMI, and he was able to pay down his debt to just a couple thousand dollars in just a few years -- a much more manageable amount.
“We know that stigma and share around debt prevents a lot of people from reaching out for help. The good news is that some generations, especially millennials and Gen Zs, are more willing to have conversations about money, and they're more willing to seek out solutions,” Nitzsche said.
