Though consolidation can be a smart move, it’s only successful if you pay off the new debt and resist the temptation to run up a balance on your newly freed cards.

Young woman paying with mobile phone at a street market

A new year is a time for resolution-making, and in 2023 you may be especially determined to get control of your finances. For many, that means eliminating high-interest credit card debt. 

Credit card balances were up 15% in the third quarter of 2022 compared to the same quarter in 2021 — the largest increase in 20 years — according to the Federal Reserve's most recent household debt and credit report. Delinquencies, though still at historic lows, are also increasing. And thanks to higher interest rates, carrying a balance is more expensive, making it easier to fall deeper into debt.

Originally published on nerdwallet.com, part of the TownNews Content Exchange.

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