Credit card debt can be a huge problem, especially for younger adults, who typically have lower incomes and are less likely to have access to credit.
A recent survey by Experian found that about one-third of people aged 18 to 29 had a credit card debt of $5,000 or more, compared to 22 percent of people 30 to 49.
This may be a problem for a few reasons, but the fact that some people do have higher credit card balances may have something to do with it.
“People are generally more cautious about how much debt they’re going to have to pay down over time,” says Jessica Bickley, a credit analyst with Experian.
“If they’re making payments on time, that might make it easier to pay back your credit card in a timely fashion.”
If you have an emergency, you may want to consider adding a few extra dollars to your credit score.
Experian recommends adding up to $300 per month in debt and interest.
“That’s a lot of interest, so it may not be worthwhile to put a lot into it,” says Bickie.
“A $300 credit card balance might be a good place to start to get some of the extra credit you’re looking for.”
If that’s not an option, there are other ways to add money to your score.
For instance, if you don’t have a lot to lose and can’t use credit cards, you might be able to add some money to the account, like adding a car loan or a home equity line of credit.
Another option is to try adding a home loan to your balance.
This can be an easy way to add a little cash to your account, and the process can be quite time-consuming.
You can also add up to a certain amount of your paycheck toward your credit cards account, so that you can avoid paying a credit limit every month.
Finally, you can consider applying for a car credit card.
Car loans can be really useful for people who may not have the money to pay off a mortgage, or have to borrow money to buy a new car.
However, you could still have trouble getting a car if you’re not a high-earning person, so you’ll want to take a look at other options first.
Read more about how credit cards affect your credit scores.
If you’re paying your credit bill on time and are a high borrower, it could help you pay down your debt in a few months, too.
If paying your bill on the wrong month or not paying your balance on time is too much of a hassle, you’re more likely to see higher interest rates on your credit reports.
“Pay your bills on time can be tricky, but it’s not that difficult,” says Chris Miller, an account manager at Experian, “especially for people with a small balance.”
This is especially true if you live in an apartment building or rental apartment, where your rent is often higher than the average price.
If that happens, you’ll need to consider changing your payment plan or canceling your mortgage.
“There’s always a little bit of risk associated with taking on more debt,” says Miller.
“But the fact of the matter is that if you want to avoid a lot more debt, then it’s worth taking on some of it.”
What do you think about credit cards and their impact on your score?
Share your thoughts in the comments below.