Do it Yourself
- UpdatedSep 19, 2024
- If you can afford to pay your credit cards down faster, you may be able to solve your debt problems yourself.
- You'll pay the entire balance owed with no concessions from creditors.
- Your credit rating should improve as you lower your balances.
It’s true: making your minimum payments keeps you looking decent on paper. You avoid late fees, aren’t reported to the credit bureaus as delinquent, and therefore don’t have to worry about hurting your credit score. So what’s the catch? Interest. You pay a very, very heavy price for making only your minimum payments.
Minimum payments are how credit card companies make money from you. When you make only the minimum payment, a significant portion of your payment goes towards your interest or finance charges.
If you are struggling to make ends meet and only paying the minimum on your accounts, it may feel like your balances never come down. Fees and interest accumulate quickly and you may even end up paying way more than you originally owed. Not to mention, it could literally take you decades to pay off. If you’re struggling with debt, it may be time to seek help.
There are online tools and resources that can help you calculate how much you’d need to pay each month to save on interest and pay off the debt by a certain date. You can find out different strategies for how to get out of debt by yourself. But if you are already struggling to pay the minimum on your accounts, these strategies may not be successful for you.
Instead, debt resolution may be a better option. The way the Freedom Debt Relief program is structured, your monthly program deposits could be lower than your current minimum payments. That means you could be working to resolve your debt while actually saving money each month.
To see if you qualify, call a Certified Debt Consultant at Freedom Debt Relief now at 800-910-0065.
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during August 2024. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
Debt relief seekers: A quick look at credit cards and FICO scores
Credit card usage varies significantly across different age groups, reflecting diverse financial needs and habits.
In August 2024, the average FICO score for people seeking debt relief programs was 582.
Here's a snapshot by age group among debt relief seekers:
| Age group | Average FICO 9 credit score | Average Credit Utilization |
|---|---|---|
| 18-25 | 565 | 93% |
| 26-35 | 575 | 91% |
| 35-50 | 578 | 89% |
| 51-65 | 583 | 87% |
| Over 65 | 597 | 82% |
| All | 582 | 88% |
Use this data to evaluate your own credit habits, set financial goals, and ensure a balanced approach to managing credit throughout your life.
Student loan debt – average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average student debt for those with a balance was $46,980. The percentage of families with student debt was 22%. (Note: It used 2022 data).
Student loan debt among those seeking debt relief is prevalent. In August 2024, 24% of the debt relief seekers had student debt. The average student debt balance (for those with student debt) was 50087.
Here is a quick look at the top five states by average student debt balance.
| State | Percent with student loans | Average Balance for those with student loans | Average monthly payment |
|---|---|---|---|
| Washington DC | 29 | $85,809 | $208 |
| Mississipi | 29 | $58,265 | $181 |
| Georgia | 31 | $56,074 | $145 |
| New Jersey | 29 | $54,691 | $197 |
| Maryland | 26 | $54,410 | $124 |
The statistics are based on all debt relief seekers with a student loan balance over $0.
Student debt is an important part of many households' financial picture. When you examine your finances, consider your total debt and your monthly payments.
Manage Your Finances Better
Understanding your debt situation is crucial. It could be high credit use, many tradelines, or a low FICO score. The right debt relief can help you manage your money. Begin your journey to financial stability by taking the first step.
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