Anyone who’s carried credit card debt knows that it can weigh heavily on your mind. Although it would be ideal if we could all avoid it, the reality is sometimes we have no other choice. Before we know it, we’re in too deep and frantically wondering how to pay off our credit card balances.
Frequently Asked Questions
When you’re a student, any sort of money management can be a challenge, let alone credit card debt. However, students can do their part to maintain financial health by doing their best to maintain a good credit score, to prioritize debt payments, to live on a budget, and to perform a debt consolidation if at all possible. Fortunately, students can also take advantage of various student-tailored perks, including grants, special pricing, and access to free or cost-reduced services.
There’s no “normal” amount of credit card debt, per se, but in 2019, Statistics Canada found the median value for those holding credit card debt by age group:
- Under 35: $2,400
- 35 to 44: $4,000
- 45 to 54: $4,000
- 55 to 64: $3,900
- 65 and over: $2,500
The simple answer to this question is that if the line of credit’s rate is lower than the credit card’s, using a line of credit is certainly an option worth considering. If you qualify for a line of credit at a low-interest rate, it is an option worth exploring. While getting a line of credit to pay off credit cards is a good idea for many people, this will ultimately depend on your personal situation.