CBS News
How to pay off $7,500 in credit card debt
Getty Images/iStockphoto
Today’s economic environment can be a challenging one if you have credit card debt. The cost of living is climbing as inflation continues unabated, which can make it difficult to budget for your credit card payments. Moreover, the Federal Reserve’s federal funds rate target currently stands at a 23-year high. And since that’s the primary benchmark for consumer interest rates, your credit card interest rates may be higher today than they were just a couple of years ago, pushing your minimum payments higher, too.
This can quickly result in thousands of dollars in accumulated credit card debt. So, what should you do if you have $7,500 (or more) in credit card debt? Since $7,500 is often the minimum amount of debt that debt relief companies are willing to help with, you may have multiple options to consider now.
Compare your debt relief options now.
How to pay off $7,500 in credit card debt
Here are three effective ways to pay off $7,500 in credit card debt:
Take advantage of debt relief
“In an inflationary environment, securing necessary debt relief is crucial,” explains Michael Broughton, founder and CEO of the credit-building app, ALTRO. “As interest rates rise, the cost of servicing debt escalates and burdens both individuals and businesses with higher payments.”
But, debt relief services can help in multiple ways. “Getting debt relief, whether through negotiating terms, exploring refinancing options or seeking assistance programs, provides essential financial breathing room,” says Broughton.
Here’s how can debt relief services help you pay off $7,500 in credit card debt:
Have an expert get you out of debt today.
Ask your lenders for help
Many lenders that offer credit cards also offer credit card hardship programs. These are typically short-term programs (usually lasting six to 24 months) that are designed to ease your financial burden in the event of a financial hardship. So, getting the help you need may be as simple as calling your lenders and asking for it.
Once you ask for help, your lender may ask questions about, and for proof of, your financial hardship. For example, if unexpected medical bills caused your hardship, your lender may ask for copies of those bills.
Nonetheless, if you qualify for a credit card hardship program, your lender may reduce your minimum payment, your interest rate or both, for a predetermined period of time. That could give you time to get back on your feet financially.
Take out a home equity loan
If you own your home, you may have quite a bit of equity that you can tap into. The average American homeowner can safely tap into around $193,000 in equity (without losing too much of a stake in their homes). Importantly, home equity loans typically come with competitive interest rates.
While the average credit card interest rate currently stands at over 20%, the average home equity loan interest rate is just 8.63%. So, if you use a home equity loan to pay off your $7,500 in credit card balances, you could realize significant interest savings.
The bottom line
High credit card interest rates and minimum payments can be difficult to stomach in today’s inflationary environment. So, if you owe $7,500 in credit card debt or more, it’s advantageous to pay your debt off as soon as possible. Debt relief services can help. You may also get short-term relief by reaching out to your lenders. And, if you own your home and have maintained a good credit score, you could save on interest by using a home equity loan to pay your credit card debt off. In any case, it’s important to act now. The faster you take control of your credit card debt, the faster you’ll be able to put it behind you.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
NASA researchers combined years of data and new imaging techniques to learn more about a “tipped over” black hole that is moving in an unexpected way.
The black hole is located in a galaxy called NGC 5084. Researchers have been aware of the galaxy for years, NASA said in a news release.
New analysis techniques developed at NASA’s Ames Research Center in California helped researchers see four long plumes of plasma emanating from the galaxy. Most galaxies don’t have plumes, and when they do, only one or two are present. The plumes suggested the galaxy might house a supermassive black hole, NASA said. Spotting both pairs, which formed an “X” shape, led researchers to focus more on the area.
Using archived data from NASA’s Hubble Space Telescope and the Atacama Large Millimeter/submillimeter Array Telescope based in Chile, researchers found that the galaxy also had a “small, dusty inner disk” rotating at the center of the galaxy, again suggesting a black hole there. Even more surprisingly, both the disk and black hole were rotating at a 90-degree angle relative to the rest of the galaxy, meaning both features are essentially “lying on their sides,” NASA said.
NASA/STScI, M. A. Malkan, B. Boizelle, A.S. Borlaff. HST WFPC2, WFC3/IR/UVIS.
“It was like seeing a crime scene with multiple types of light,” said research scientist Alejandro Serrano Borlaff, who will also publish a paper about the discovery, in the news release. “Putting all the pictures together revealed that NGC 5084 has changed a lot in its recent past.”
It’s not clear what caused the change in the galaxy. It may have collided with another galaxy and formed a chimney of superheated gas, creating the X-shaped plasma plumes. Further research will have to be conducted to learn more about the circumstances.
“Detecting two pairs of X-ray plumes in one galaxy is exceptional,” said Pamela Marcum, an astrophysicist at Ames and co-author on the discovery, in the news release. “The combination of their unusual, cross-shaped structure and the ‘tipped-over,’ dusty disk gives us unique insights into this galaxy’s history.”
