Why You Shouldn't Hold Debt on Credit Cards

Thursday, November 15, 2018 - 00:33

Money Management


Everyone knows that credit card debt is bad. Even though every one knows this, many people still find themselves drowning in credit card debt time and time again. In fact, some people have had to file for bankruptcy multiple times in order to resolve debt troubles that they had no way of getting out of.

For these reasons, it's important for everyone to review exactly why credit card debt is so awful. Here are three reasons why you should never hold any kind of credit card debt:

  • Credit cards come with high interest rates: Many credit cards are costing you upwards of 20 percent annually on your balances. This is a massive amount of money, and if it takes you years to pay off your debt, you could be paying double or triple -- or more -- of the amount you originally put on the card. You might have thought you got a good deal on the new television you bought with the card, but when you consider that you will likely pay triple that amount after years of paying off your card, it's not such a good deal anymore.
  • It takes too long to pay off: Your minimum payments might not look like a lot of money -- and that might be a good thing for your finances at the moment -- but if you hope to ever get out of debt fast, you'll need to pay a lot more money each month to pay down your credit card bills.
  • You're not making money off your purchases: If credit cards were used to buy items that increased in value, like a home or a piece of real estate, that would be one thing, but most people use their cards to buy consumable items that don't bring them any extra monetary benefit.

If you have credit card debt and are strugging to pay off this debt, you may need to consider bankruptcy or a consumer proposal. Contact our office today for a free, no-obligation consultation. We're here to help. 

Latest Posts

Re-establishing Credit After Bankruptcy

People often express concern over the affect filing bankruptcy will have on their credit score, as well as their ability to re-establish credit after filing bankruptcy. The answers to these questions can be somewhat complex, depending on the circumstances.

January 12, 2019

Bankruptcy, Rebuilding Credit

5 Biggest Mistakes People Make When Paying Off Debt

The decision to get yourself out of debt is a life changer, if you are willing to make the necessary commitment that goes with that. Getting out of debt involves more than just paying off a few credit cards. It means:

December 31, 2018

Money Management