Scott Walker, governor of Wisconsin has become the most recent example of a
national phenomenon—credit card debt. Governor Walker’s debt status was
revealed through his disclosure forms required by the Federal Election Commission.
In addition to his credit card debt, Walker disclosed $100,000 in outstanding
student loans used to pay for his children’s education.
Billions in credit card debt
Governor Walker is not alone, and his disclosure is not scandalous. According to
data from the Federal Reserve, total credit card debt as of May, 2015 was $901
billion. Compounding the situation is that most credit card holders are not paying
off their credit card balance each month. According to the National Foundation for
Credit Card Counseling, around 35 million are rolling over approximately $2,500 in
credit card debt each month.
This situation of barely making minimum payments, or not making even the minimum
leaves you vulnerable to increasing interest rates and fees from your credit card
company, as well as causing your FICO, or credit rating, to plummet. Besides the
financial aspects, many studies reveal that debt causes anxiety, stress, and
insomnia—all of which leads to physical and emotional ailments.
Governor Walker’s story is a familiar one. His income is modest, he has children in
college, his is one of the sandwich generation, meaning that his parents live with
him—an added expense, he has a mortgage, car payments, and all the ordinary
expenses of managing a household. It is not difficult to see yourself in his shoes.
It is not the end of the road though. Governor Walker could apply for a credit card
debt consolidation loan from a peer to peer lender, such as Peerform, and quickly
get his credit card debt under control in one tidy monthly payment, without risk of
increasing interest rates and a damaged credit rating.
Interest rates could go higher
An upcoming Federal Reserve Board meeting is causing a lot of people to hold their
breath, from investors to real estate agents, as everyone is expecting an interest
rate hike of some sort. The question is how much and how will it impact various
markets. For certain, an interest rate hike is not good news for the millions of
consumers, like Governor Walker, carrying credit card debt and especially bad
news for those who are already dealing with interest rate increases due to their
inability to pay off their credit card balances. Even a 1% increase by the Federal
Reserve could be significant for the millions of credit card holders who are
struggling to make their monthly payments.
What’s the answer?
There are two ways to get your credit card debt under control:
- Balance transfer: credit card companies offer balance transfers which is a
great way to change your 17% interest rate to 0% for the short
introductory period, and give you some breathing room to pay down the
balance. This works great if your FICO is at least 700, you have little other
debt, such as mortgage and student loans, you are disciplined and will stick
to a pay-off plan and not add to the balance, and you have the ability to pay
off the credit card debt in only a few months. After the introductory period
has concluded, your 0% interest disappears.
- Personal loan: with a credit card debt consolidation loan from a marketplace
lender, such as Peerform, you can take out a loan at a fixed, competitive
interest rate, for a set period of time. You apply online, your FICO score can
be only 600, you will receive an answer and access to your loan funds quickly,
and you will be left with one single payment that is automatically deducted
from your bank account. For consumers like Governor Walker and the
millions of others drowning in credit card debt, this the best tool for
recovering your financial, emotional and physical health.
With a loan from Peerform, Governor Walker can get his bills under control, with a
better interest rate and the ease of one, automatic payment so he can worry less
about growing debt and more about how to improve the lives of his constituents.