Ahh the credit card. That magical piece of plastic. Some have that one go-to credit card, others have a whole rotation of them in their wallet. With one tap we can purchase our daily coffee or a $5,000 purse. The credit card is indeed a magical tool. But the tool can turn into a curse when we allow our spending to spiral. About half of Americans carry credit card debt from month to month, meaning they do not pay off their statement balance.
Some causes of credit card debt are emergency expenses and the increasing cost of living. Another big contributor is our culture of consumerism, the idea that spending on goods and services promotes well-being. Buying things makes us happy 😆.
The effects of credit card debt vary by person and magnitude of debt. It could cause low to high level stress. If you keep your credit card balance high it may lead to lower credit scores. It may even affect big life decisions such as when to get married or start a family. You may not want to enter a new life situation with a load of credit card debt.
Credit card debt can be manageable. You need to get educated, get a plan, and don’t get trapped in the cycle. Credit card companies make money off your interest payments. Stay one step ahead. Signing up for this newsletter is a great start! So stay tuned for more tips and share this article with someone in your life.
MMM tip: Do you normally pay just the minimum amount each month on your credit card bill? In the next payment target the statement balance. If that is not doable pay $50 more than the minimum.
Until next week!
Dariene
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Disclaimer: This newsletter is for informational and educational purposes only and should not be considered financial, investment, tax, or legal advice. I am not a licensed financial advisor. Please consult a qualified professional before making any financial decisions.
