If you have a credit card it doesn't mean that you now have free money. Nor is it OPM, other people's money, that now you can use to purchase your own stuff. The bottom line: if you make a purchase on credit, you will eventually have to pay for the item(s). What the banks love is to charge the customer interest for "borrowing" that money at a high APR, annual percentage rate, if you do not pay in full for the amount borrowed in the 1st month.
NO PAY IN THE 1ST MONTH?
Let say your purchase a computer for $1000 on a credit card, and you do not pay off the credit card in full within the 1st month paying only $100. Your APR is 24%. When you get your next statement you know what your bill will look like? $1132!!!!! That is more than what you "purchased" for the computer! That is ridiculous. It would take you a while to pay this off! Okay, okay. Your APR could be less. You can pay more money each month. Yet, I will list things you should avoid with your credit card.
- Use a debit card instead of a credit card.
- Pay for the entire bill in the 1st month.
- If you don't have $ for the item to it pays off in the 1st month? Don't buy it!!
To Your Wealth
