The ‘sandwich generation’ is racking up an average of $7,000 on their credit cards as total balances spike to $930 billion — here’s how to dig your way out of debt faster

Moneywise
The ‘sandwich generation’ is racking up an average of $7,000 on their credit cards as total balances spike to $930 billion — here’s how to dig your way out of debt faster
The ‘sandwich generation’ is racking up an average of $7,000 on their credit cards as total balances spike to $930 billion — here’s how to dig your way out of debt faster

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Gen X has the most credit card debt, at an average of $8,870 per person, according to a study from Experian.

As a part of the sandwich generation, these middle-aged adults are more likely to be caring for both their aging parents and their own children, while simultaneously saving for their own retirement – leaving them no choice but to put these extra expenses on their credit cards.

According to the Federal Reserve Bank of St. Louis , total credit card debt reached a record $1.08 trillion in 2023.

As high inflation and interest rate hikes pervade, large credit card debts become increasingly harder to pay off. Fortunately there are strategies you can use to dig yourself out faster – no matter your age.

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How to get rid of your credit card debt

Regardless of what year you were born in, consider employing these tactics to help make your debt more manageable.

1. Consolidate your debt

Credit card interest hits harder because it compounds, which means even your interest accumulates interest. So if you’re juggling multiple credit cards, while only making minimum payments every month, you'll be paying a fortune on top of your debt.

Try Credible*, a free online service that shows you the best lending options to pay off your credit card debt fast – and save a ton in interest.

Credible lets you comparison-shop for the lowest interest rates – it’s totally free and it won’t hurt your credit score. Depending on how much you owe, you could save thousands in interest* in the long run.

Read more: Retire richer — why people who work with a financial advisor retire with an extra $1.3 million

2. Save on mandatory expenses

Your accumulated savings will have less of an impact if you’re throwing money away on mandatory expenses like home* or car* insurance, given that there are often more affordable options on the market.

SmartFinancial sorts through multiple home insurance* quotes and BestMoney.com does the same for auto insurance* companies to find you the lowest rates available in your area – it only takes a few minutes and it’s absolutely free to see your options.

All you have to do is answer a few quick questions about yourself, and you could shave hundreds off your monthly bills.

3. Monitor and improve your credit score

Your credit score has a major impact on multiple aspects of your life. If it’s low, you’ll pay higher interest on things like credit cards, car loans and mortgages and you may even be considered an untrustworthy prospect to potential employers and landlords.

That’s why it’s important to monitor your credit and keep yourself in the driving seat of your finances. Once you know what your score is and whether you’re suffering disadvantages, you’ll also know how much room you have to improve.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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