Credit card debt is one of the worst types of debt. Why?
Credit card debt is one of the worst types of debt, because you can purchase depreciating assets with credit cards, which provides you the opportunity to go deep into debt with no idea how to get out. If you are making the minimum payments and are disorganized, you should not have a credit card.
Another great answer, Katherine. Let’s recap. You buy “stuff” that depreciates the moment you take it home and then you start paying interest on that “stuff” that is worth far less than you paid for it. This is how you go broke. Avoid all debt on depreciating assets. That means most of the “stuff” you see in malls, car lots, and the television.
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