‘Your Wallet’: How to avoid mistakes that lead to credit card debt

LINCOLN, Neb. (KLKN) — Credit card debt in the United States has hit $1 trillion for the first time on record, according to new data.

Experts say people are relying more on credit cards because prices are up amid high inflation.

But if you don’t use your credit card wisely, it can add to your financial burdens.

Experts say there are mistakes you should avoid.

“If you open too many cards, that can start impacting your credit score,” said Tim Kulhanek with Stonebridge Insurance and Wealth Management in Lincoln. “When you miss a payment, that is a huge thing when it comes to things like your credit score and being able to access credit in the future.”

He said you should avoid is having more than three to five credit cards.

Another common mistake is only making minimum payments. Kulhanek said it could take months or even years to pay off your credit card.

There are also many things to do if you have fallen into any of these mistakes.

Kulhanek said you should start by paying off your credit card with the lowest balance. Then you can take that money and start putting it toward the next-lowest balance.

“I’m going to take all the money I was putting on that and put it on the next one and get it paid off, ” Kulhanek said.

He said there are also apps and tools online, including Credit Karma, that will help you keep track of your credit cards and payments.