Now is also a good time to renew career contacts and to sign up for training that may help expand marketable skills, should you find yourself out of work.
“This is a great time to network and polish up that résumé,” said Jen Smith, a co-host, with Jill Sirianni, of the “Frugal Friends” budgeting podcast.
Here are some questions and answers about coping with economic uncertainty:
What is the best way to reduce credit card debt?
There are two common approaches. The first calls for identifying the card with the highest interest rate and putting extra money toward paying off that balance first. (At the same time, make the minimum payments on your other cards.) When that card is paid off, apply the extra cash to the card with the next highest rate and so on.
The second approach involves paying off the card with the smallest balance first, for a sense of quick progress, while making minimum payments on the others. When the first card is paid off, move to the next lowest balance.
If you have strong credit, consider applying for a card with a zero-percent transfer offer. You can move high-interest balances to the new account and pay them off without incurring extra interest. However, you’ll typically pay a fee of 3 to 5 percent of the balance you are moving, so this technique makes sense only if you can pay off the balance during the no-interest period, which often lasts 18 months.
If you need more help, nonprofit credit counselors offer debt management plans for a fee, which is offset by lower rates negotiated with card companies. The Justice Department offers a list of approved credit counseling agencies on its website.
Article source: https://www.nytimes.com/2022/07/01/your-money/credit-card-debt-economy.html
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