Credit Card debt is often treated like a moral failing, but it’s not! You don’t have to be embarrassed or ashamed of Credit Card debt because it’s more common than one would expect. The average U.S. household owes $16,061 in Credit Card debt, according to an analysis released by personal finance company NerdWallet. The total debt, including Mortgages, Student Loans, and Auto Loans, are expected to surpass the amounts owed at the start of the Great Recession in the next year. If you find yourself trapped in a similar hole of debt, stop digging!

This amount of total household debt is largely due to high-interest rates. The average household that owes money on Credit Cards pays about $1,292 in interest each year (NerdWallet.) That’s a lot of cash that you could potentially be putting toward expenses like groceries, bills, or even a vacation! To take back the fight against Credit Card debt, consider these strategies when mapping out your financial plans.

1. Limit your spending—Look over past statements to eliminate unnecessary spending on goods that you know you will not need. Limit spending to necessities like groceries and maintenance around your home; avoid retail purchases or expensive vacations.
2.  Set up strict weekly spending limits—You have to be hard on yourself to stay under your designated amount for the week and consistently stick to it. Even if that means saying no to that new pair of shoes that just came out or a new 4K TV you’ve had your eyes on, it doesn’t matter! You have to say no to purchases like this in order to stay on track with your financial plan.
3. Move your balance to a low-rate Loan—Most debt is accumulated by interest, so find a loan with a lower interest rate to reduce payment amounts. Our Visa® Gold Card and Signature Loan both offer low-interest rates with high credit limits to help assist in alleviating debt.

If a potential purchase does not go along with the plan you set up for yourself, it probably isn’t worth it and will only set you back from your long-term financial goals. It’s sometimes extremely difficult for us as consumers to make these decisions in today’s society when we are tempted into buying every “good deal” we see when we should be considering the lasting effect of our purchases.

Remember to really think about your purchases, and when in doubt, always ask yourself if it is a necessity or not. Taking these precautionary steps are a sound way to keep control over your debt, making it easier for you as a member to achieve financial success and build wealth at Yolo Federal Credit Union.