Credit card debt is one of the worst types of debt. Why?
Credit card debt is one of the worst debts because it has one of the highest interest rates compared to other debts. Credit card debt is easy to get if you don’t track your spending. To avoid credit card bent you should limit how much you use your credit card and pay the full amount at the end of the cycle so you won’t have to pay interest. If you have credit card debt then you should make that your top priority to pay it off before you spend money on other things.
Credit card debt is so bad due to the high interest rate that people pay on it. A small balance can grow quite quickly if only the minimum payment is made. Many people also overlook credit card debt. They just ignore it and hope it magically goes away. The only debt that is worse then credit card debt is a pay day loan that has even higher interest rates and fees. You should avoid any kind of loan that does not provide a benefit to you. Such as student loan, home loans, or a business loan. These loans can help you in the long run, credit card debt does not. Buying stuff that goes down in value quickly using a credit card is a quick way to become broke.
Well said, gentlemen. Let’s review.
(1) Credit card debt usually has very high interest rates attached to it. It will compound dramatically over time in some very devastating ways.
(2) Credit card debt usually means you are living above your means or you are not paying attention to the situation. Either way, you will suffer.
(3) If you have credit card debt, make extra payments and pay it off as fast as possible.
(4) Stop using credit cards until you can pay them off every month in full. Cut them up, freeze them, or do something else. Just stop the insanity!
(5) Take a moment and ask yourself why you have credit card debt. Try to be honest with yourself. The root cause is rarely credit card debt. What was it that took you to that point? Find that answer.
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