TAMPA, Fla. — According to a new report, total credit card debt nationwide hit a record $1.14 trillion in the second quarter of 2024.
That’s up by about $27 billion compared to just one year ago with Florida ranking in the Top 10 states where people have the most debt.
Nick Malapit says he found himself buried in credit card debt, but he’s slowly digging his way out on the road to financial recovery.
Nick Malapit says like many Floridians he found himself relying on credit cards to make ends meet. Over time, his debt ballooned to $27,000. He says despite making regular payments, the high interest rates meant he wasn’t making a dent in his balance.
He says he was determined to take control of his finances, so he sought help. He worked with the nonprofit Money Management International (MMI) to create a budget and prioritize his payments. He says they even reached out to credit card companies to negotiate lower interest rates.
“They actually compiled all the cards that I had that I was struggling to make payments for and they actually worked out their own deals with the companies so it was lower and that way money is actually going toward your balance," Malapit said.
MMI is a nonprofit organization that provides free financial counseling and debt management services. They work directly with credit card companies to negotiate lower interest rates and consolidate debt into manageable payments.
MMI’s services have been a lifeline for many, offering personalized plans to tackle debt. They also provide educational resources to help individuals make informed financial decisions.
“The first thing is to work on their budget to understand what is coming in and what’s going out and what can be adjusted are there any spending habits that can be changed," Tom Nitzsche, an MMI financial advisor said.
"Can we look at the creditors to try and reduce the interest rates to reduce the amount they have to pay out every month to those obligations and then from there working with the creditors, get them on board to reduce interest rates so we can make progress so more of that payment goes to principal rather than interest,” Nitzche continued.
In addition to their debt management services, MMI offers tips for those looking to dig themselves out of debt like creating a budget, prioritizing high-interest debts, and seeking professional advice if needed.