he new year is here, and it’s traditionally time for new beginnings. You probably have many exciting or anxiety-inducing things going on, whether your New Year’s resolutions include using your gym membership or hitting career goals.
The credit cards in your wallet are probably far from the first thing on your mind. However, 2022 credit card trends may have a great impact on your financial health. What you do (or don’t do) with your credit cards in the new year can make a significant difference in your budget—and even your lifestyle.
Don’t worry, I’m not about to send you on a research mission to find what 2022 has in store for credit cards. Read on to learn what to expect from the card landscape and how to prepare your wallet.
Rossman offers the following example: “At 16.13 percent, someone making minimum payments toward the average credit card debt ($5,525, according to Experian) would be in debt for 194 months (a little over 16 years) and would pay $6,160 in interest. The minimum payments would start at about $130 and decline along with the balance. At 16.88 percent, it would take 196 months and $6,472 in interest (an increase of $312). The minimum payments would start at approximately $133.”
As you can see, making minimum payments can keep you in debt longer, especially if rates continue to rise. The best solution is to make credit card debt repayment a priority.
Revise your budget and see where you can cut expenses to pay off your cards faster. Rossman also suggests nonprofit credit counseling, taking on a side hustle or selling unneeded possessions to raise some cash.
