Credit Card Debt

Credit card debt

You do not want to have credit card debt. Most people put a majority of their purchases on a credit card. If you are not careful with budgeting, you can easily find yourself in credit card debt. Currently in the United States, 126.2 million people are in credit card debt. You only want to use a credit card if you know you have the money to pay for it at the end of the month. Credit cards currently have an extremely high interest rate nearing 24%.

Example of credit card debt assuming 12% interest rate (which is low). Let's say you have a credit card balance of $1000. After one year that $1000 becomes $1,126.83 assuming no payments are made and no fees. As you can see, it's extremely easy to rack up credit card debt.

So make sure you budget so you do not build up credit card debt otherwise it can effect your credit score or it can cause you to go bankrupt.