Credit cards can be a powerful financial tool and a great way to make purchases. However, they can also be the source of major headaches if you don’t use them wisely.<\/p>\n\n\n\n
Many people use credit cards without knowing the basics about how they work and what happens when you carry a balance from month to month. Learning these few things will help you manage your credit card responsibly and avoid costly mistakes. Excessive credit card debt can cause major problems for the future of your finances, so it’s important to know how to manage your credit cards properly.<\/p>\n\n\n\n
You may not realize that carrying a balance on your card costs you money in interest charges each month until it\u2019s too late! Interest rates vary depending on the type of card you have, but let’s say your card charges a 15% Annual Percentage Rate (APR). That means if you owe $1,000, then over a year, this will cost $150 in interest alone. And if that doesn’t seem bad enough, many companies also tack on penalty fees for paying late or going over your limit- which could be $35 or more per transaction.<\/p>\n\n\n\n
It\u2019s easy to see why using a credit card responsibly is crucial \u2013 especially with all those high costs involved. But don\u2019t worry – there are plenty of ways to keep yourself out of trouble while still enjoying all the benefits of using plastic.<\/p>\n\n\n\n
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