by John Savage, Author, CFHC
Credit Cards
Credit cards is one the easiest and all too common debt trap that can be easy to get into and 10 times harder to get out of. Even with the best intentions, with emergencies and other life circumstances, anyone can find themselves in the credit card trap. Credit cards can be your friend or your enemy, many times it is how you manage them that can make the difference. With that said, there are situations where a person can find themselves in financially due to no fault of their own or because of over or underestimating in their monthly budget and then spending money they don’t really have on the credit card.
This is one of the most common situations people regularly fall into. It is easy to add a few more dollars on the credit card instead of using cash in your pocket because the purchase is more than the case you have on hand. The problem with the habits is that they become frequent and then you find yourself going from maybe a few dollars to hundreds of dollars extra added to your credit line, resulting in higher interest fees. This can be easy to all into, especially when finances are already tight, or if you don’t have a clear spending plan to stay within the boundaries of what you can afford each month.
With a volatile economy and interest rates, you are bound to go from paying a few hundred dollars in interest to several thousand dollars a year due to increased rates, higher balances, and in some cases, annual fees added on to your balances and you not realizing the difference. We are here to help you overcome financial setbacks and credit challenges, one debt at a time! For more information about Unwind Financial Consulting Services, you can email us at info@unwindfinancial.org.