U.S. consumers lowered debt to begin 2017 - WMC Action News 5 - Memphis, Tennessee

U.S. consumers lowered debt to begin 2017

(Source: Flickr) (Source: Flickr)
(WMC) -

Based on a recent Federal Reserve report, financial website WalletHub has released its Q1 Credit Card Study which concludes that U.S. consumers repaid $31.5 billion in credit card debt during the first quarter of 2017.

This first-quarter pay-down is a 14 percent improvement relative to the same quarter last year. But it is 5 percent below the post-Great Recession average Q1 pay-down. Based on these early returns, WalletHub projects that we will end 2017 with more than $60 billion in new credit card debt. That would mean we’d owe well over $1 trillion in credit card debt overall.

With that in mind, here are some tips that consumers should follow to reach debt freedom as quickly and inexpensively as possible:

  1. Make a Budget & Stick to It – Rank-order your expenses and trim the fat until the amount you earn exceeds the amount you spend.
  2. Build an Emergency Fund – Your goal should be to gradually save about a year’s worth of after-tax income through monthly contributions to an emergency account.
  3. Improve Your Credit – A higher credit score will help you save on everything from loans and lines of credit to insurance policies.
  4. Transfer a Balance – You can save a boatload on finance charges by transferring your debt to a zero-percent balance transfer credit card.
  5. Pay Off Your Most Expensive Debt First – Devote the majority of your monthly debt payment to the balance with the highest interest rate, while making minimum payments on any other balances you may owe. Then repeat.

You can see the full report, and a complete explanation of these tips, here.

Copyright 2017 WMC Action News 5. All rights reserved.

  • News on WMCTV.comNewsMore>>

  • Civilian review board feels it has 'no power' when overseeing MPD

    Civilian review board feels it has 'no power' when overseeing MPD

    Sunday, May 20 2018 6:12 PM EDT2018-05-20 22:12:45 GMT
    Reverend Ralph White (Source: WMC Action News 5)Reverend Ralph White (Source: WMC Action News 5)
    Reverend Ralph White (Source: WMC Action News 5)Reverend Ralph White (Source: WMC Action News 5)

    The Civilian Law Enforcement Review Board (CLERB) is tasked with investigating allegations of police misconduct, but it's chairman said instead of providing oversight, it's all just one big show. 

    More >>

    The Civilian Law Enforcement Review Board (CLERB) is tasked with investigating allegations of police misconduct, but it's chairman said instead of providing oversight, it's all just one big show. 

    More >>
  • Man shot, killed in Raleigh

    Man shot, killed in Raleigh

    Sunday, May 20 2018 4:04 PM EDT2018-05-20 20:04:11 GMT
    (Source: WMC Action News 5)(Source: WMC Action News 5)

    Memphis Police are investigating a shooting that left a man dead. 

    More >>

    Memphis Police are investigating a shooting that left a man dead. 

    More >>
  • 9-year-old dies after driver falls asleep behind the wheel

    9-year-old dies after driver falls asleep behind the wheel

    Sunday, May 20 2018 3:15 PM EDT2018-05-20 19:15:30 GMT
    (WMC Action News 5)(WMC Action News 5)

    Memphis Police Department is investigating a deadly crash that happened early Sunday morning.  Police were called to the scene on Spottswood Avenue and Goodwyn Street where a car hit a tree.  Three children were injured in the crash and taken to Lebonheur Children's Hospital. Two of the children are in non-critical condition. Nine-year-old Jaliya Lewis died from her injuries. Police say the children were unrestrained in the back seat of the vehicle and were thrown to the ...

    More >>

    Memphis Police Department is investigating a deadly crash that happened early Sunday morning.  Police were called to the scene on Spottswood Avenue and Goodwyn Street where a car hit a tree.  Three children were injured in the crash and taken to Lebonheur Children's Hospital. Two of the children are in non-critical condition. Nine-year-old Jaliya Lewis died from her injuries. Police say the children were unrestrained in the back seat of the vehicle and were thrown to the ...

    More >>
Powered by Frankly