Credit Card Interest Rates are Killers

Last updated on February 6th, 2025 at 05:55 pm

You’re drowning in debt and you need a financial strategy to stay above water, so, you decide to pay your monthly bills by charging them on your credit card. 

You think this is a good idea because you can easily afford to make the minimum monthly credit card payment.

Well, let me tell you, using your credit card to ‘stay above water’ is like hitting yourself in the head with a hammer.

It’s like grabbing a towel – while you’re still in the shower, it’s like starting dinner – while the house is on fire.

This financial strategy is just so crazy.

If you are drowning in debt, the first thing you need to do is to turn off the water, and this is exactly what you are doing when you stop charging on your credit cards.

The interest that the credit card company will charge you, for the convenience of using their credit card, will kill you in the long run.

Here is how your ‘credit card strategy’ will kill you;

• Let’s say that you pay all of your monthly bills using your credit card
• The total charge for all of your monthly bills is $1000 dollars
• Your credit card company charges 18% percent interest
• Let’s say that you do make the minimum payment every month
• Over one year, you will end up paying $175 dollars in interest charges
• WORSE, you will still owe $946 dollars on the original $1000 that you charged ONE YEAR AGO!

NOT a good financial strategy.

Trust me, you will be in a much better position, if you stop using your credit cards to stay above water, and find a way to increase your weekly and/or monthly cash flow, and then, use the extra cash to pay down your total debt situation.

You can find more suggestions right here on how to get a handle on your debt, but the foundation always comes down to Control, Discipline, and Restraint.

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