What is Credit Card Debt
Why would someone be in debt?
They spent more than they could afford.
List some things you should not do when owning a credit card.
Spending ridiculous amounts of money.
Pay the bills on time (with the interest if you can)
Organize
Pay your bills on time and be wary of how much you are spending to what you know you can afford to pay off.
What kind of payment are you making when it is with a credit card?
Deferred payment (over time)
2
Paying the bills after the deadline
Solutions?
Pay the full balance of the credit card each month so you can start off with a zero balance. (it is less risky)
What should you do?
Create a safety net (emergency funds) so that you will be able to have a net to lean on if you do forget to pay the bills on time/spend too much credit.
What might a credit card debt be similar to?
A loan from the bank
3
Give the credit card to someone else
Eliminate??
If you do come across a bill you cannot pay off, instead of trying to pay it all off at once, pay it off little by little until you are able to pay the rest off. Paying in full not only takes longer (which means increased interest), it also means that you are adding to the bill because you aren't anything off.
Most important!
Know the contract of agreement you are signing before you make the final decision. You may have certain benefits as well as added interests (when paying the bills late or spending too much money, so it is always good to know how your credit card functions as well as what is needed in order to ensure that you will not end up in debt.