Tag: Susan E Ball stewardship

Minimizing the Costs of Credit Card Balances

Americans have a love affair with credit cards. They make life easier while also making it easier to overspend. Studies reveal that a purchaser will spend an average of 20% more on an item when using a credit card than when paying with cash.

Person using a laptop computer and holding a credit card. Title is "Minimizing the Costs of Credit Card Balances."

Credit card usage peaked in the fourth quarter of 2008, as the nation entered a severe recession, with balances reaching a then-high of $866 billion. Credit card balances fell significantly over the next 5 years. As the economy recovered, however, the use of credit cards and credit card balances began to rise. Today, credit card balances are approaching the $1 trillion level. The average consumer carries a credit card balance of $7,279 (Lendingtree.com). Fifty-three percent of credit cards being actively used are not paid off in full each month. The average interest rate of these balances is 20.92%, and the average interest rate being offered to new borrowers is 23.65%. 

The good news is that most Americans make regular credit card payments, and only 2.25% of credit card balances are delinquent by 30 days or more.

The minimum credit card payment is typically about 2% of the balance. On the average balance of $7,279, the minimum payment would be $86. At that payment and an interest rate of 20.92%, it would take a borrower 28 years and 3 months to pay off the debt. The total interest paid would be $27,776. In this scenario, the $7,279 in debt would cost the borrower $35,055.

When a consumer (that’s you) begins to take an active role in their financial future, they can minimize the interest on credit card balances. Remember, interest is handing part of your hard-earned paycheck to someone loaning you money. If you are not paying off your credit card each month, you need to determine why you carry a balance. 

The steps below can help you make advances on getting a handle on your credit card debt: 

  1. Always pay at least the minimum balance on time.
  2. Set up automatic payments to ensure that payments are always made on time.
  3. Pay more than the minimum balance whenever possible.
  4. Consider the actual cost of debt before making large purchases on credit cards.
  5. If your balances are on multiple credit cards, prioritize paying off the card with the highest interest rate first.
  6. Live below your means so that you will have some money each month to put toward your credit card balances.
  7. Create a budget to live within your means. (Refer to my past posts on budgeting) 

To learn more about how to manage your money and pay off debt, please click the Finances categories tab to find many blogs on money management, budgeting, and stewardship. My book Honoring God with Your Money is a great tool for financial money management.

If you would like to receive my quarterly newsletter on managing your money, please complete the short form: newsletter signup.

New Year’s Resolution or My One Word

We are seven days into 2022, and, if you made a New Year’s resolution, you may have already broken it or you likely will soon. Studies show that most people throw in the towel by the end of January, and 68% don’t last a full month.

My One Word is an alternative to making New Year’s Resolutions. The concept was conceived Mike Ashcraft, senior pastor of Port City Community Church in Wilmington, NC, in 2010.  Mike realized that resolutions are often focused on overcoming past failures–I resolve to lose weight gained or to get out of debt that I have accumulated. He recognized that a better approach is to focus on what God wants to do in your life.

Mike challenged his congregation and blog readers to pray about where God wants to lead them in the coming year.  What is God speaking into your life?  What does God want you to become?  How does God want to use you? What does He want you to learn?

MyOneWord.org
myoneword.org


As you pray and focus on God’s will for you, you will feel God impressing a word into your spirit. This is your One Word for the coming year.  Your Word will be unique to you and where God is leading you. 

I chose my first One Word in 2011; it was Delight.  I also chose a theme Scripture for the year that went along with my word, “Delight yourself also in the Lord, and He shall give you the desires of your heart.” Psalm 37:4  At that time, my husband had been unemployed for two years, with no end in sight. Yet, the Lord promised that if we delighted in Him, He would bless us. I meditated on Psalm 37:4, and God lifted my spirits and increased my faith. And, despite my husband’s continued lack of employment income, God provided for us to celebrate our 30th anniversary that spring with a cruise to Alaska. And, by the end of the year, my husband was back at work with the company that had laid him off nearly three years earlier. Praise the Lord!

Some of my other One Words have been Commitment, Intentional, Rest, and Stewardship.  My year of focusing on stewardship lead me to write a book and start a newsletter. The book and newsletter are designed to help others become responsible stewards of the financial resources God has entrusted to them.

My One Word for 2022 is Praise. I look forward to focusing my energy on praising the Lord throughout each day.  Rather than a single verse, I have selected Psalm 150 as my theme Scripture passage. I am considering choosing a new Psalm of praise for each month, or maybe every week.

I encourage you to pray about God’s desire for your focus in 2022 and to select a word that represents your focus.  To learn more about the My One Word experiment, go to myoneworld.org.

If you have questions about faithful stewardship of your financial resources, please feel free to email me at susan.ball5@aol.com or write your question in the Comment section.  Those who email me will be signed up to receive my free quarterly newsletter with money management tips, encouraging stories, and Scripture inspirations. You may also sign up for the newsletter on the Contact page of this site.

For those desiring a better understanding of Biblical principles of money management, I have written a book Honoring God with Your Money. It is available on Amazon and from Barnes and Noble.

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