Enslaved by CC Debt?

Sherpa Sense:

Pay your credit card balance off on time every month to avoid paying high interest rates and late fees.

Let’s Yak:

Credit card debt is one of the most expensive debts that you can have. Interest rates are extremely high – typically from 12% to 23%. The cost is even higher if you forget to pay your bill on time – tack late fees of ($27 first time or $38 for subsequent late payments) and additional penalty interest. #creditcardblues

Ask yourself do I really need this now? Is it a need or a want?

Using the online calculator with a CC interest rate of 20% and making minimum payments of $25/month –> that $1000 iPhone will cost you >$1600 and take 5.4 years to pay it off! #ouch

Benefits:

Using a CC does have advantages – many offer cash back or rewards. They also protect you if you are not happy with your purchase – you can refuse a payment to a vendor through the CC company and return the product. Also, many cards offer price protection, additional warranty on what you have purchased, etc. Use them, but pay the balance off each month. Using this approach will improve your credit score. A better credit score will help you get a lower interest rate on your car or house.

Finally, by using a CC, the issuer will cover any fraudulent charges. If you use a debit card, the funds will come out of your account and won’t be redeposited until the bank processes the fraudulent claims.

Take a Hike:

 Get started on paying off that CC ASAP by increasing your payment amount and then celebrate when you have paid it off!  #materialgirl

Use this handy on-line calculator to check what your CC balance will cost you.

https://www.creditcards.com/calculators/payoff/

Never miss a payment: Schedule a reminder 2-5 days before your monthly credit card payment is due or set up auto-pay for the ‘statement balance’. #latefeesarebrutal

Yakety Yak:

We are inundated with CC offers, everything from 0% interest for a year to 40% off of your purchase.  A friend, who shall remain nameless, got sucked in and ended up paying CC debt for >10 years. 

Peak Lookout:

Credit scores are totally tied to this, so check out B&B’s Badass Credit Score -420 is Not a Smokin’ Score!

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