If you are unaware of the perils you can have with a charge card, it may be smart of you to not get one.
Your card can have a lot of benefits.
You can use it to buy things you may not be able to afford right now but really want, and pay it off with monthly payments.
You can also build up your credit score if you were to pay on time every month.
The problem most people run into is that they do not feel like they are losing money because they are paying a fraction of what they borrow each month.
However, if you have other expenses like rent, a mortgage, utilities, insurance bills and other things you will soon find that the more you borrow on the card, the more expensive things will get for you.
The higher amount you owe, the hire the minimum payments become until you are paying as little as possible and it is still one of your most expensive bills each month.
When you pay the minimum, most of that is actually going towards your interest.
Someone who owes $5,000 on their card could pay the minimum of $250 each month for a year.
Now that's $3,000 you have put towards your card over the past twelve months but it has only lowered the balance due by less than $1,300.
That is why people are in debt bad.
This is also why people fall behind in payments because the minimum becomes too much for them to make on time.
That is how your credit score is hurt.
You owe a lot of money, and at the best you can only pay the least amount due, and you are falling behind on that.
Once you get things paid off you need to get credit repair to fix your score.
Credit repair is great because it allows you to repair your score at a cheap price.
By David George
Your card can have a lot of benefits.
You can use it to buy things you may not be able to afford right now but really want, and pay it off with monthly payments.
You can also build up your credit score if you were to pay on time every month.
The problem most people run into is that they do not feel like they are losing money because they are paying a fraction of what they borrow each month.
However, if you have other expenses like rent, a mortgage, utilities, insurance bills and other things you will soon find that the more you borrow on the card, the more expensive things will get for you.
The higher amount you owe, the hire the minimum payments become until you are paying as little as possible and it is still one of your most expensive bills each month.
When you pay the minimum, most of that is actually going towards your interest.
Someone who owes $5,000 on their card could pay the minimum of $250 each month for a year.
Now that's $3,000 you have put towards your card over the past twelve months but it has only lowered the balance due by less than $1,300.
That is why people are in debt bad.
This is also why people fall behind in payments because the minimum becomes too much for them to make on time.
That is how your credit score is hurt.
You owe a lot of money, and at the best you can only pay the least amount due, and you are falling behind on that.
Once you get things paid off you need to get credit repair to fix your score.
Credit repair is great because it allows you to repair your score at a cheap price.
By David George
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