The Serious Downsides of Carrying Credit Card Debt
Tuesday, 2 April 2024, 23:00
Why Credit Card Debt Can Be a Huge Problem
Credit card debt is bad news, with high interest rates and long repayment terms.
The Costly Impact
- Expensive: The average interest rate on credit cards is 21.47%, leading to significant interest charges.
- Minimum Payment Trap: Making only minimum payments can keep you in debt for years, with most of your payments going toward interest.
- Future Opportunities: Being in debt reduces your ability to save, invest, and live within your means.
How to Handle Credit Card Debt
- Living on a budget: Charge only what you can pay off in full.
- Debt payoff plan: Make extra payments and consider a balance transfer card to lower your interest rate.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.