How to Kill Off That Credit Card Debt Once and for All
*By Carlo Versano*
Your debt doesn't need to follow you around forever ー especially not credit card debt, that insidious baggage that so many of us carry with us daily.
According to Jennifer Streaks, nationally recognized personal finance expert and author of [Thrive! ... Affordably](https://jenniferstreaks.com/), the first step is to avoid getting overwhelmed. "Understand that there are steps you can take," she told Cheddar Wednesday.
Among the most underutilized ways to achieve debt relief is an old-fashioned phone call, Streaks said. Banks are amenable to lowering interest rates or waiving late fees or service charges, particularly for long-standing customers who pay on time, all the time. "They want to cater to you," she said ー so come right out and ask for a break.
There's also debt consolidation. Don't be so quick to throw away those snail mail offers for credit cards with zero percent interest. So long as you are able to pay off the debt load within the time frame of the zero percent interest rate ー usually around six months ー it could be worth it to transfer debts from cards you already have, according to Streaks. Consolidation can make sense if your debt doesn't exceed 50 percent of your income and your cash flow is enough to consistently cover debt payments. Credit unions also often offer low-interest loans that provide a way to pay off all credit card debt in one fell swoop, she said.
Whether you may qualify for one of those loans or a no-interest credit card will depend largely on your credit score, that big round three-digit number by FICO that seems to be generated by some form of black magic or witchcraft. As it turns out, Streaks said, FICO scores are fairly easy to predict when you look at what they consider: 35 percent is payment history, 30 percent is the amount owed, 15 percent is the length of credit history, and 20 percent is a combination of your new credit and credit mix. But what matters most is regular, on-time payments.
"Debt comes from the habits we form," Streaks said. And once you change those habits and tackle that debt, "it's really freeing."
A new mobile app has launched just in time for Valentine's Day. Our.Love bills itself as an A.I.-powered, gamified, relationship wellness app for couples. The app is set in what the company calls the Coupleverse, a virtual world where each couple can build a virtual relationship home as they also build their real-world relationship. Founder and CEO Tal Zlotnitsky joined Cheddar to discuss how the app works. "The concept behind Our.Love is to give people the opportunity to understand where they stand in their relationship through very simple metrics that we provide within the app that will help them in real-time, see where they stand, see where their partner is, and be able to get closer together," he said.
The Super Bowl is just 48 hours away and things are definitely heating up in the social media space, especially on Twitter. Fans across the country are quickly engaging in color commentary as they call it, and actively sharing their views on who's expected to take the big win, which players they are looking forward to seeing. Senior Sports Partner Manager at Twitter, David Herman, joined Cheddar to discuss more.
Director and producer Ivan Reitman passed away over the weekend at the age of 75. The filmmaker was the mastermind behind some of America's favorite films such as "Ghostbusters". Reitman’s family released a statement explaining how they are comforted by the lives he has touched through his films.
The 21st Annual Food Network and Cooking Channel South Beach Wine & Food Festival (SOBEWFF), is returning to Miami on February 24 with proceeds to benefit the future leaders of the hospitality industry. Lee Schrager, the founder and director of the festival, and Food Network star Jeff Mauro joined Cheddar News to discuss what ticket holders can expect, how the festival benefits students, and how Mauro will be paying tribute to fellow food celebrity, Guy Fieri, by hosting a charity auction dinner. "I mean there's nobody bigger, nobody more magnetic right now in the food space than Guy," Maura said. "I mean the guy had a Super Bowl commercial on last night. That's a dream of mine, so I'm one step closer there just by doing a tight 20 minutes at his tribute dinner."
