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."
Adult-use cannabis sales kicked off in Nevada in 2017, but four years later, there isn’t a legal way for the 40 million tourists who visit the state annually to consume. That’s all about to change. Following the passage in June of a bill to legalize consumption lounges, the world’s largest dispensary, Planet 13, is planning a cannabis club as extravagant as Las Vegas. Cheddar’s Chloe Aiello visited the cannabis entertainment complex to find out more.
Guerdy Abraira, Global Event Planner and 'The Real Housewives of Miami' cast member joins Cheddar News to discuss the latest season as well as making the most out of your NYE celebrations.
David Ewalt, Editor-in-Chief at Gizmodo joins Cheddar News to discuss a TikTok moderator suing the platform over mental trauma caused by graphic videos
The pandemic has supercharged the creator economy, and there are no signs of it slowing down no matter when the pandemic officially ends. Creators prove to be a key factor in driving purchasing decisions and retail sales, and an increasing amount of platforms are taking advantage of the social influence. Karissa Bell, senior editor at Engadget, joins cheddar news to discuss the creator economy boom.
The E-V maker Tesla has had a wild year. The company managed to continue to dominate the U.S. electric vehicle space despite growing competition and production delays. As the end comes to an end, Tesla finds itself growing richer and richer. Author of Risk Ritual Newsletter Richard Smith, joined Cheddar to discuss more.
Venture capitalists and CEOs are clashing over the future of the internet. Web3 is the tech world's name for a decentralized, blockchain-based internet that runs on cryptocurrency. It was recently the topic of a tweet from Block CEO and former Twitter CEO Jack Dorsey who wrote that Web3 will not actually be owned by users, and instead be controlled by rich venture capitalists. Dorsey later shared that he was blocked on Twitter by Marc Andreesen, co-founder of VC firm Andreesen Horowitz, which has invested billions of dollars into Web3 and crypto projects. Correspondent for DealBook from the New York Times, Ephrat Livni, joins Cheddar News' Closing Bell to discuss what this could mean for the future of Web3.
