Being unemployed is stressful enough, but adding credit card debt into that equation can compound your worries

Fortunately, you have options and a free credit counseling session can help you discover ways to deal with debt while unemployed.

Handling Credit Card Debt While Unemployed

A strange thing happened when the COVID-19 economic shutdown hit the United States — millions of Americans did NOT go further into credit card debt.

A familiar thing is happening now that the economy is recovering. Millions of Americans are going further into credit card debt.

Sadly, there is no vaccine for credit card debt. You need to protect yourself, and the first step is to recognize the enemy.

When money is tight, it’s tempting to have a credit card company throw you a lifeline. But it’s really more like tossing an anchor to a drowning man or woman.

The culprit is interest rates, which averaged 16.3% in June, according to the Federal Reserve. That’s five times more than a typical mortgage rate these days. And most credit card companies compound interest daily, meaning more interest is added to the principal every 24 hours.

You can end up paying as much in interest as you did for the item you purchased. That treadmill seemed to have largely gone out, but now it’s back.

Belt Tightening Loosens Up

Credit card debt was expected to skyrocket when the pandemic hit and the unemployment rate jumped to 14.7% in . Read more