If you ask Suze Orman, she’ll say that credit cards in and of themselves aren’t really a bad thing. Sometimes they are necessary. However, the way that you use them and how you handle your financial life in general can be very significant in what interest rate you end up paying.
It doesn’t matter how careful you are with your credit card by paying on time, paying extra, and not charging over your credit limit. If you are late on any of your other bills, your credit card can use something called ‘universal default’ to raise your interest rate. When they do this you can end up paying a lot more interest than you expected.
This can hurt you financial and make it harder for you to both pay off your credit card and pay your other bills, meaning that your financial life might actually get worse.
Related Blogs
- Related Blogs on credit cards
- Excessive Credit Card Use
- How many credit cards is too many — by CATHERINE MOODY
- Credit Card Debt Management: Fight Your Credit Card Debts — by …
- Prepaid Credit Cards – How They Work — by DAN MOSKEL
- Finding 0% credit cards amid the credit crunch — by CARYS ROBSHAW