TOLEDO, Ohio — The average millennial has close to 5 thousand dollars in credit card debt according to Experian, but there are ways to get out of that financial hole.
Credit card analyst Ted Rossman, from bankrate.com, says it could come down to the type of credit card you applies for.
"If you have the average credit card balance, which is about $55 hundred according to Transunion, and you only make minimum payments at 19.6 percent, that'll keep you in debt for about 17 years." said Rossman.
Millennials with credit card debt can carry that interest with them for years if it doesn't get paid in full.
Rossman says one solution is to apply for a zero interest credit card and put all of your debt there.
"The competition's been pretty stiff though. We've seen Bank of America, Citibank, and Wells Fargo all offering certain cards with up to 21 months interest free," said Rossman.
Some credit cards you could apply for, to help you save on interest payments, include:
- Wells Fargo Active Cash Card which currently offers 15 months at 0 percent APR (annual percentage rate).
- Bank of America, which is offering a zero percent interest card for 21 billing cycles.
- CITI Diamond preferred credit card, which is offering zero percent APR for 21 months on balance transfers and 12 months on purchases.
Here's the catch though - and it's very important. Once these introductory promotions dry up, the APR for these cards are going to jump sky high - up to 28 percent depending on your credit history, 9 percent above the average.
Remember, the goal of putting all your debt onto a zero interest card is to pay down your debt, not accumulate more.
That's why experts say the younger generation should make a financial plan before applying for a zero-interest credit card. Then, use a debit card or cash to pay for purchases until the debt is gone.
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