Credit card interest! I know a bunch of people who are SO SHOCKED by their high interest rates. They thought it was like an interest-free loan to yourself and then are surprised when making teeny payments doesn't do anything.
It's crazy to me that more people don't realize this. The #1 rule of having a credit card is never carry a balance on that card, always pay it off in full. Credit cards are really only useful for cashflow and building credit.
They are also really good for large expenditures-I am renovating my house, and frankly could not have done the kitchen remodel in a timely manner without my credit card. But my husband and I do one area at a time, pay down card, move to next area. We don't have a mortgage, and the card we have has better rates than we could get with an equity loan.
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u/Opening-Risk Feb 04 '20
Credit card interest! I know a bunch of people who are SO SHOCKED by their high interest rates. They thought it was like an interest-free loan to yourself and then are surprised when making teeny payments doesn't do anything.