Fed raising rates again; tips to pay off credit card debt

The Fed just announced its raising interest rates again to fight inflation another quarter of a point.

But credit card debt is already at a record high, as more consumers report using credit cards for everyday expenses.

Bankrate reports that 46% of people are carrying debt month to month, up from 39% a year ago.

The average credit card APR is 20.4%.

The issue is disproportionately affecting communities of color.  The Associated Press reports credit card debt has increased for 30% of white adults, and 50% for Black and Hispanic adults.

Here are some steps to help get out of debt from Nerdwallet:

Cut your expenses so you can put more money toward debt.

Develop a debt strategy.  In addition to making minimum payments, add extra money to one card payment, either the card with the highest interest rate (the avalanche method) or the lowest balance (the snowball method).  Paying down the card with the highest interest rate first will help save you the most money.

Take advantage of 0% credit card transfer offers, or consider a personal or consolidation loan at a lower, fixed rate.

Ask your creditors to lower your interest rate.  LendingTree says 70% of people who ask get a lower rate.

A non-profit credit counseling agency, such as Money Management International or GreenPath Financial Wellness, can work with your creditors to help you reduce your balances, lower the interest rate, set a budget, and pay debt off faster.