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Why is credit card debt so bad?
Let’s say you have a $10,000 credit card bill, with a 24% APR (or 2% a month), and you only pay the required 5% minimum payment, until the minimum payment is $25.
In short, you pay 5% but get charged 2% per month. How long will you have a credit card debt?
After 98 months, or over 8 years, your balance on your credit card is still $505!
Then it would take another 29 months if you paid the minimum $25 per month.
That’s almost 11 years of credit card debt!
And heaven forbid should you take a cash advance from one credit card to pay the required 5% minimum payment on another credit card debt!
Are you living on a champagne lifestyle while on a beer income with your credit cards?
This blog is dedicated to educate why credit card debt is so evil, and how to get out of it.
Sure, there are some tricks, like signing up with a new credit card with a 0% APR for the first 6 months before it jumps to 24%. Then you keep transferring your huge balance and hop from credit card to another credit card.
The most common sense method if eliminating credit card debt is to:
Read on, educate, and get out of credit card debt now!
Also, if California has a state law on capping interest rates, how come banks like Wells Fargo still have outrageous credit card interests? Because their credit card division is registered in Delaware!