Making minimum payments on credit cards can severely impact one’s financial health, particularly due to high APRs that can lead to significant interest payments. This practice generally does not improve credit scores and may place users in a perpetual cycle of debt. Budgeting more effectively and utilizing debit or cash can curtail reliance on credit. Interestingly, certain credit cards with promotional '0% Intro APR' offers can help users reduce debt more efficiently if managed correctly, ultimately enhancing financial stability.
Making the minimum payment on credit card balances may be doing more harm than you think. Users could pay more in interest than they gain back in rewards.
Sticking with debit or cash until your budget is back on track can help combat the credit score-eroding effects of minimum payments.
Credit cards make it easy to overestimate your budget, resulting in difficulty making full payments and leading to a negative financial impact.
Some credit cards can actually help you get out of debt faster, particularly those with a '0% Intro APR' period.
Collection
[
|
...
]