NEW YORK (WABC) — After a season of spending, your wallet might be running on empty.
The new year is a great time to re-evaluate your finances and get on track with your money goals.
According to WalletHub, Americans added $50 billion to their credit card balances in 2025. So it’s a new year and time to hit that restart button.
If you only pay off the minimum balance, how much more will you owe back? 7 On Your Side’s Nina Pineda says that if math isn’t your strong suit, there are tools to help you calculate this.
For example, if we take the average debt of $6,523 and the average interest rate of 22.83%, with a minimum payment of roughly 3%, about $150, not only will it take almost eight years to pay that off, but you will owe $7,532 in interest. That’s doubling what you originally owed. If you add just $50 to that monthly payment, it will cut your payoff time to just over four years and save nearly $4,000 in interest. It’s really important to pay over the minimum every month if you can.
What options do people have for relief? If you have a lot of cards, consider consolidating your debt to a balance transfer card. This can give you a break on interest for up to almost two years, depending on the card.
There are pros and cons: you’ll pay off debt faster and your credit score will improve, but you must pay down the debt before the introductory rate expires. Fees can apply, and discipline is key, don’t make debt worse by using the cards you transferred balances from.
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