NBC Miami: More people seeking help for credit card debt. Here's how you can pay it off

Growing credit card debt and steep interest rates are becoming a significant burden for many Americans, with a notable surge in individuals seeking assistance. MMI VP of Operations Emanuel Rivero and MMI client Sharice Nwankwo talk with NBC Miami's Yaima Crespo about how to deal with unmanageable credit card debt.

Transcript:

Live. the news on NBC 6 Starts Now.

More people in Florida need help with their credit card debt. I'm NBC 6 response Yaima Crespo. Next we show you a way to lower what you pay in interest and get out of debt faster.

Welcome back. Well, more and more people in our area are feeling the squeeze from growing credit card debt and steep interest rates. In fact, there's been a big jump in people in our state looking for help with their debt according to a credit counseling agency. And NBC 6 response Yaima Crespo shares steps you can take to tackle your debt.

“I was using my credit card and after a while I couldn't pay the minimum payment." Sharice Nwankwo was in a tough spot with over $20,000 in credit card debt, struggling to pay it off because of high interest rates.

“The balance wasn’t going down”. Sharice's story is far from unique.

“We're actually seeing a significant increase in phone call volume folks that are reaching out to us for help and…”

Emanuel Rivera with Money Management International, a nonprofit credit counseling agency, says in 2023 Florida ranked second in the country on the number of people asking for help with their credit card debt, with requests up over 60% from the year before.

According to the Federal Reserve Bank of New York, American's total credit card debt has now reached over $1 trillion and in 2023 the number of people falling behind on their credit card payments went up by more than 50%.

“What we're seeing here is that a lot of different economic pressures are finally coming to a head.”

Emanuel says many are resorting to credit cards for everyday expenses like groceries and utility bills on top of managing student loan payments.

“There's just so much payment pressure going onto people's budgets.”

Sharice - once a Miami resident, now teaches preschool overseas in Hong Kong - felt the strain on her own budget. She turned to MMI for help.

“They contacted the credit card company and negotiated a lower interest rate. So when I made the payment to MMI it covered the lower interest rates and then my balance started going down.”

In five years Sharice paid off her credit card debt. It was very clean and it's very rewarding. If you choose a debt management plan with MMI there's a monthly cost and a one-time setup fee.

“There is no fee for the credit counseling session. They're going to conduct a full financial assessment.”

For Sharice, the experience taught her to live within her means. “I make a budget now every month. I make a budget and I try to stick to that as best as I can.” Sharice was also able to significantly boost her credit score.

Now we know that sometimes bad actors can be ready to take advantage of your financial situation. The Consumer Financial Protection Bureau says a reputable agency will offer free information about their service without requiring your personal details up front. If an agency doesn't do this consider this a red flag and look elsewhere. If you're unsure you can check the company's history or complaints with the Florida Attorney General's office and local consumer protection agencies.

Head over to NBC6.com where we have posted helpful links. Yaima Crespo, NBC6 response.