The Dangers of Revolving Credit Card Debt

The Dangers of Revolving Credit Card Debt

The Dangers of Revolving Credit Card Debt

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Credit cards are fantastic when you’re at the store. When you get the bill, they aren’t so awesome a few weeks later. Unfortunately, many people have fallen prey to the dangers of revolving credit card debt. Learn from their mistakes here so that the same won’t happen to you!

The Ease of Spending

Forking over rolls of cash is more complicated than handing the store clerk your credit card. With the cash, you can see your money going away, and the credit card looks the same whether you’re spending $2 or $2,000! Furthermore, a debit card will generally stop working when there’s no more money in the account. A credit card will let you spend up to your limit — which could be far more than you have in your bank account.

It’s Easy to Get Behind

As easy as it is to spend, it’s even easier to get behind. Once you start carrying a balance on your credit card, it’s difficult to catch up. As you keep using your card, the balance creeps higher and higher, and the interest you’re now paying piles on an extra expense.

Interest Is Expensive

Speaking of interest, let’s dive a little deeper. The average credit card interest rate is 16.45%, and some can charge over 24%! Your credit card company will charge you a daily rate, which is your interest rate divided by 365. This happens every day, driving your balance up surprisingly quickly.

Tank Your Credit Score

On-time payments are a big part of your credit score. All it takes are a few missed payments (easy to do), and your credit score will take a nosedive. You can avoid this by setting up automatic payments, but even that isn’t a surefire way of making sure your card is paid each month. There must be enough money in the linked account to work.

Paying off Your Credit Card

Personal loans or installment loans generally offer better interest rates than credit cards. After all, finding a low-interest credit card is like finding a unicorn in the middle of the woods. Getting a short-term loan is an excellent way to consolidate credit card debt. Plus, you can’t keep spending more which is a big help with credit card debt.

Reach out to us here at AmeriCash Loans. We offer easy online loans that allow you to get the financing you need to pay off your credit card debt for good! So, don’t worry about Googling “loan places near me.” Just jump online and apply for an installment loan with AmeriCash Loans for the credit card consolidation help you need!
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