Avoiding credit card debt

There’s been a lot of positive trends in our economy lately: Unemployment has hit a nine-year low, the stock market climbed to all-time highs and consumer confidence is up.

However, credit card debt has been painting a different picture. A WalletHub study found Americans piled on $21.9 billion in 2016’s third quarter. It’s the largest debt increase since 2007 before the Great Recession.

Michael Wolsten, Idaho Central Credit Union’s assistant vice president over eastern Idaho branches, said most credit card users tend to rack on the debt when things happen outside of their control.

“It could be auto repairs, a dishwasher going out or it could be a medical expense,” Wolsten said. “If there isn’t a savings account established, you easily swipe.”

Next thing you know, all those easy swipes and chip inserts add up to create a mounting debt. Wolsten advises to avoid those pitfalls is to create a plan.

First, create a budget.

“Make sure you know where every dollar is spent,” he said.

The plan also needs to address the possible road bumps along the way.

“Set some of your paycheck aside each time your paid to make sure you’re ready for those expenses that happen out of nowhere,” Wolsten said.

When getting a credit card, it’s good to get a card with something like a reward system attached. It helps the card pay off in more ways than one. Also, check your credit score at least once a year. Doing so should be a part of your plan, since things like fraudulent activity can go unnoticed.