Ways to Mitigate Credit Card Use During Inflation

RICHMOND, Va. (WWBT) — Credit card balances fell $123 billion in 2021, down 14%.

Elizabeth Renter, data journalist at NerdWallet, explains that there are many reasons why people have been able to pay off their credit card balance over the past year.

“People were spending less money on things like entertainment, travel, childcare, but some of them also had extra income, like the child tax credit and stimulus checks from the federal government,” Renter said.

She adds that people are spending their money again, but the items are much more expensive now. This means that people are likely to return their credit card.

The renter says to be strategic about how you use your credit cards. If you can pay off all the purchases you put on your card within one month before you accrue interest.

“It’s not always possible. If you’re having financial stressors like not being at work or having an unexpected bill, come in. If so, you can temporarily make the minimum payment, right. That’s why he’s here,” Renter said.

Even if you can only pay the minimum, at the moment the tenant says to pay it on time.

She says you don’t want to be reported to a credit agency. You don’t want to face penalties on top of interest.

Copyright 2022 WWBT. All rights reserved.

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