The Biggest Mistake When Getting Credit Cards
There are many problems associated with borrowing money. Mainly you become slave to your debt. When you take someones money, you owe them. Above all else you must pay, or you will be hurt. Physically, well probably not unless you borrow it form Uncle Vinny down the street. When you sign for credit you are agreeing to the terms. When you spend the money, the bank will want it back.
So what is the biggest mistake of people spending on credit? Well I think it is overspending. Letting your credit card balance creep up, and then not being able to make the payment. Almost worse than that is always making the minimum payments and not a dime more.
When you pay minimums, you never get ahead and almost always your balance creeps up faster than you will pay it off. Minimum payments are disastrous for many people. Sooner or later you will not make the minimum and you will lose.
How will you lose, you ask? Well, you will get hit with late fees, they will often raise your interest rate to extremely high rates, and they will start messing up your credit. this will result in higher rates on any new credit cards, or auto loans, and even mortgages. So you will lose when your balance creeps up above the point you can pay. Sooner or later this will happen if you pay only the minimum.
Don’t do it. Don’t fall into the trap of minimum card payments. This is the biggest mistake you will make when using credit to purchase. Just don’t do it, and you will be glad. Pay off the balance each and every month, and you will save yourself thousands.
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So very true! Minimums are a trap!