Here’s the average credit card balance in 2024. How is it different from yours?

If you can’t seem to break the cycle of credit card debt, you’re not alone. TransUnion reports that as of the second quarter of 2024, the average credit card balance was $6,329. This is quite a significant increase from last year, when the average credit card balance was $5,947.

Of course, the problem with credit card debt is that it can be expensive. This is because credit cards are notorious for charging large amounts of interest.

In fact, let’s say you owe $6,329 on your credit cards and you’re charged 20% interest on those balances. If it takes you 24 months to pay it off, you’re looking at spending $1,402 in interest.

But an extra $1,402 could make a huge difference to your finances if you could save that money instead. This could help boost your emergency fund or help you save up for a more reliable car, for example. Therefore, it is important to try to pay off your credit card debt as quickly as possible.

A good way to get rid of credit card debt faster is to take up a side hustle. If you have credit card debt, it’s likely because your regular paycheck from work is only enough to pay your minimum monthly payments. But if you can make extra money from your second gig, you can use it to reduce your credit card balances and reduce them.

But you should also know that credit card debt consolidation can help you pay it off sooner. And here are two options to consider in this regard.

1. Balance transfer

When you transfer a balance, you don’t immediately get rid of your credit card debt. Instead, you transfer your balances onto one credit card, so you only have to make one monthly payment. But this is not the only advantage.

Many balance transfer credit cards have an introductory interest rate of 0%. And not having to pay interest on your balance for a year or more could be your ticket to becoming debt-free for good.

Now you’ll need to look out for balance transfer fees that could eat into your savings. But if you read the fine print, you might find an offer you like.Click here for a list of the best credit cards for balance transfers..

2. Consumer loan

Unlike a balance transfer, a personal loan does not give you an interest-free period on your debt. Rather, when you co-sign a personal loan, you commit to a predetermined interest rate on the amount you borrow.

The advantage of a personal loan, however, is that you usually expect a lower interest rate – and often many lower – on your debt than what a typical credit card charges. Additionally, by using a balance transfer offer, you risk accruing interest quickly once the introductory rate period comes to an end. But with a personal loan, your interest rate is fixed.

For example, let’s say you find a balance transfer offer with a 12-month 0% introductory rate. It’s a good deal in theory. But if you don’t pay off your balance in full within 12 months, you could receive an interest rate of 26% on the remaining amount of your debt.

On the other hand, if you sign up for a personal loan at 8% and get five years to pay it off, you won’t have to worry about your interest rate going above 8%. So, by taking out a personal loan, you can get more peace of mind.Click here to view a list of the best personal loan lenders.

Whether your credit card balance is higher, lower, or similar to that of the average consumer, it’s worth trying to get it down to $0 as quickly as possible. And to that end, earning extra money through a side hustle and consolidating your debt with a personal loan or balance transfer could be your ticket to getting rid of credit card debt for good.

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