¨47% of Americans carry credit card debt¨
¨40% of Americans can´t pay more than the minimum payment.¨
How does this actually impact your finances? Let’s take a look.
Even when interest rates are low, credit card interest rates are still 15-20%. When the Federal Reserve raises interest rates, credit card interest rates go on the rise.
Credit card debt is so prevalent for two reasons:
1. For many people their credit card serves as their emergency fund. When unexpected expenses arise and they don’t have the money, they use their credit card to cover the expense.
2. Many people don’t realize how much they are paying in interest and therefore always carry a statement balance.
Either way the interest rates on credit cards are criminal and you should do what you can to get credit card debt out of your life.
Did you know that if you pay the Statement Balance in full each month, you don´t have to pay credit card interest?
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Disclaimer: I am an educator, not your personal financial advisor. Please make sure to do your own research before moving forward with any actions discussed in this newsletter.
Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won’t experience any loss when investing. Always remember to make smart decisions and do your own research!
