Does a sunny employment outlook equal more debt repayment?

Improving employment situation could enable consumers to pay down credit card debt.

With the employment situation improving, Americans might be more able to pay down credit card debt, as they don’t have to worry about losing their jobs as much.

June proved to be another strong month for the jobs market, with the private sector adding 188,000 positions, up from 134,000 in the previous month, according to the ADP National Employment Report.

By company size, small businesses added 84,000 new jobs, followed by medium businesses at 55,000 and large businesses with 49,000.

Two of the biggest signs of improvement for the employment situation were the goods-producing sector and manufacturing industry both posting job growth.

“The job market continues to gracefully navigate through the strongly blowing fiscal headwinds,” said Mark Zandi, chief economist at Moody’s Analytics. “Health Care Reform does not appear to be significantly hampering job growth, at least not so far. Job gains are broad based across industries and businesses of all sizes.”

Americans who are now able to pay down their debts should consider using these tips:

1. Always pay more than the minimum: When paying off credit card debt, simply making minimum payments will drag out the process, and lead to a lot of interest accumulating on the balance. With that said, consumers should always pay more than the minimum unless it is absolutely the only amount they are able to afford. The more that is paid, the sooner they will be out of debt and able to better their financial situation.

2. Start with the highest interest card: Interest can make credit card debt much more expensive, so those with cards that have high balances and rates of more than 20 percent should attack this card first when paying down debt. Using this method can help consumers limit the amount of interest is accrued on their balances, as the card that costs the most is paid off first.

3. Negotiate terms: Consumers who find that their credit cards are costing them a lot of money in interest might want to consider negotiating their terms with the card’s provider. In certain instances, all it takes is a simple phone call to reduce the interest rate on a credit card. Even if it is only able to be decreased one or two percentage points, that can save people a lot of money while paying down their debt.