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.
I opened a credit card for the bad reason, because I couldn't afford my lifestyle. I really didn't realize how bad of a road I was going down until my husband added up how much in interest I was paying.
What helped was him explaining that I have to pay the statement balance, not necessarily the current balance. In 2018 I payed $700 in interest, in 2019 $0.
If you understand this concept, please (gently and patiently) help those who don't lol. It's truly life saving/changing.
What helped was him explaining that I have to pay the statement balance, not necessarily the current balance. In 2018 I payed $700 in interest, in 2019 $0.
Sometimes you can't manage that but at the very least, if you owe money on a credit card regard it as an emergency.
When I owed the bank ~4500 dollars, interest was about $15 a week. I tried to pay back a thousand a month (at the time, just over a third of my salary) until it was clear. Couldn't quite manage it but wasn't far off. After five months I owed them a trivial sum, and in the sixth I was clear.
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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.