Updated: Apr 2
When it comes to debt, credit cards reign supreme as the “baddest of the bad.” With sky-high interest rates, hidden fees, and a never-ending cycle of payments, credit card debt can quickly spiral out of control and leave you deep in the red.
First of all, credit cards have notoriously high interest rates, which are usually well above 20%. This means that even if you pay the minimum every month, you’ll still be paying a hefty amount in interest. Not only that, but many credit cards also come with hidden fees and other costs that can really add up.
Another issue with credit card debt is that it can quickly become overwhelming. With its never-ending cycle of payments and interest, it can be difficult to keep up with the payments and still have enough money left over for other things. In addition, it can be difficult to pay off any significant amount of the debt, as the interest keeps piling on.
Finally, credit card debt is a major drain on your credit score. With a lower credit score, you may be unable to get a loan or rent an apartment. But your credit score is everything. It might as well be called your life score.
This content provides general consumer information. It is not legal advice or regulatory guidance.