Family Credit

‍Outlet: Yahoo Finance
Author: G. Brian Davis

Key Takeaway

Avoiding credit card statements can make it harder to recognize a growing debt problem. Reviewing your balances, payments and spending gives you a starting point for deciding what to do next.

Michael McAuliffe Discusses Financial Avoidance

Family Credit Management President Michael McAuliffe contributed to an article published on Yahoo Finance examining financial habits through the lens of Dave Ramsey’s views on money and behavior.

McAuliffe addressed the tendency to put off uncomfortable financial tasks:

“People avoid opening their statements, avoid checking their balances and having honest conversations with their partners about money” -Michael McAuliffe, Family Credit Management, in Yahoo Finance

When Checking Your Accounts Feels Overwhelming

Opening a credit card statement can be stressful when you’re worried about what you’ll find. But without reviewing it, you may miss changes in your balance, interest charges or minimum payment.

Debt can grow even when you don’t feel like you’re making large purchases. Groceries, transportation and other essentials can gradually add to balances when your income doesn’t cover your expenses.

Financial difficulties can also follow a job loss, medical emergency or other setback. Whatever brought you to this point, understanding the numbers helps you evaluate your options.

Start With a Simple Debt Check-In

You don’t need to solve everything in one sitting. Start by gathering your latest statements and writing down:

The balance on each account
Each account’s interest rate
The minimum payment and due date
Whether the balance increased or decreased since the previous statement

Then compare your monthly payments and essential expenses with your take-home income. This can help you see whether you have room to make progress or need additional support.

Our credit card payoff calculator can help you explore how your payment amount and interest rate affect your payoff timeline.

Turn Awareness Into a Workable Plan

Knowing what you owe is a starting point. The next step is finding a repayment approach that fits your budget.

If interest charges are slowing your progress, explore options for lowering your credit card interest rate. If your payments are unaffordable or you’re relying on credit for everyday expenses, a nonprofit credit counselor can help you review the bigger picture.

For eligible consumers, Family Credit Management’s Debt Management Program may provide reduced interest rates and combine participating debts into one monthly payment. A counselor can help determine whether the program is appropriate for your situation.