Large purchases don’t come cheap. A TV, speakers and the miles of cables and cords you need to hook everything up can run you a decent amount of money — but if you use your credit card to pay for them, they can end up costing you even more than you bargained for in the long run. High interest rates are a challenge most of us face, but one you can overcome with a little knowhow.
What is revolving credit card debt?
When you use your credit card, you’re borrowing money from the bank with the understanding that you will pay it back in a timely manner. If you purchase an item for $100 on your card with a 10% interest rate, failing to pay off your balance on time means you owe that $100 plus the 10%. At the end of the day, that item really cost you $110.
If you carry balances from month to month, that debt can really stack up and eat away at your carefully planned budget. It can be a tricky subject to grasp, but if you’re having difficulties rest assured you’re not alone. Thankfully, there’s a light at the end of the tunnel. There are two ways…