How to Avoid the Dangers of Credit Card Debt

Category: Money

You may be thinking about issuing a credit card or you may already be using one. Keep reading to understand the dangers that come along with credit card use and how to avoid them.

It’s been proven that consumers will spend more when they’re paying with credit cards than when paying with cash. So, set a personal spending limit with your credit card based on how much you can afford.

Try to pay credit card balances in full each month. This will allow you to avoid any interest. When you fail to pay your balance in full, a portion of each payment goes toward interest payments.

When you borrow money, you create debt. Debt can lead to many problems such as depression and other health issues. If this happens, stop using your credit card and focus on living without it.

Also, credit cards can have a major impact on your credit score. Pay your credit card on time and keep your balance below 30% of your credit limit.

Read More Here: https://www.thebalance.com/dangers-of-credit-cards-960217