Credit Card Disaster

Begin a Debt Disaster Now!

You start by getting a credit card.

You get excited and see something you would like to buy. You don't have the money for it today. Let's say it's a new set of ski boots that cost $600 or a new video game console that cost $600.

You promise yourself that you will pay it off in the next 3 months. You tell yourself, “I will just pay an extra $200 for the next three months and it will be paid off.”

You get your credit card bill and you don't quite have the extra $200. This is how it starts. Your personal Credit Card Disaster is just starting.

Next you get an offer for a screaming deal on a ski trip, Friends have an Air BNB rented and you can join the trip cheaply. You put it on your credit card.

Listen to a Dave Ramsey podcast or radio broadcast sometime. The people calling in on his podcast or radio program have $20,000 to $380,000 in debt. Usually a large portion of this debt will be credit cards. They started with just $600 in unpaid credit card debt.

Your debt can grow very quickly.

Don't fall into this trap, pay your credit card in full every month.

The average American has three credit cards and somewhere around $5,500 in unpaid balances.

Comments

My Introduction to Airline Miles

I was first introduced to airline miles by a friend who had just gotten a United Airline Chase Credit Card . I signed up and started getting airline miles for all of my business purchases. Just for signing up I received 50,000 miles. I believe I had to spend $3,000 in the first three months to get the 50,000 points. This was a great bonus, two free flights anywhere in the US for spending $3,000 which I would have spent anyway. The annual fee for this card is $95 which is waived for the first year. It took 25,000 airline miles to get one round trip ticket anywhere in the US. Short flights would only cost 20,000 airline miles. I used just this Chase United card for a couple of years and earned a couple hundred thousand Airline Miles on the purchases my business made. More Chase Points Cards I applied for and got more Chase credit cards for points. I got the first Chase Freedom card with no annual fee. This ca...

How Home Loans Impact Your Credit Report

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Should I Carry a Balance On My Credit Card?

No Many people think that it will help your credit if you carry a Balance on your Credit Card. This is simply not true. The only things that change if you carry a balance on your card is you will pay a high rate of interest and you will pay interest. You do not need to pay interest on your cards to keep them active and for them to have a positive effect on your credit score. Use each of your cards a few times a year and pay them off in full at the end of the month and they will stay open and eventually have a positive effect on your credit score.

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