Credit card debt is one of the main reasons why people have to file for bankruptcy, take out home mortgage loans, or do other extreme things. Studies show that credit card debt is slowly making people's financial situations worse or making them worse than they have ever been. It can also cause depression, lower GPAs, and more drug use among college students. Credit card debt can add up quickly, especially if you use your cards for everything and have more than one.
Interest
Interest is the money a borrower pays to a lender on a balance, and it has to be paid every month if the balance is carried over from one month to the next. Most of the time, interest doesn't go down on its own, and if you only pay the minimum, your balance can get too big to handle. If you miss a payment, your interest rate could go up to 35%, making it very hard to pay off your balance. Since interest rates are still going up, there's no better time to look at your finances closely.
Payment
Debt, especially credit card debt, can add up very quickly, and soon many people can barely make the minimum payments. Remember that if you miss just one payment, your rate could go up a lot. If you have trouble remembering to pay your credit card bills, it's best to set up direct debits. It's always best to keep your spending under control and try to pay more than the minimum payment when you can.
The biggest problem with credit cards is that they make spending money very easy. The most important thing you can do to get out of credit card debt is to stop using your credit card for everything. Instead, pay for things with cash as much as you can. Studies show that men have more credit card debt than women, and that joint accounts have even more debt than single ones. The problem with having credit card debt is that if you only make the minimum payments, the interest on the card will usually add up much faster.
