How Credit card keeps you poor for 35 years
I first found these 20 years ago that if you keep paying minimum required amount on what you owe which is 2 to 10 percent of what you owe your credit card, it can take you 35 years or longer to settle it. Let's run a test...how many times have you paid off all you you owe your credit card since day 1 you received it ie in last 5 10 15 20years? And when do you think you will pay what you're currently owing last 5 10 15 20years looking at min you pay and revolving credit?
Problem is the status credit cards give one
And furthermore not knowing how to use it.
Shame on you if you are brandishing your black or platinum credit card
When you first get your credit card interest rates is a single digit ie less than 10 percent, in the US even zero interest but here is the trick, interest rate depends on your credit score, the riskier the more interests up to 25 30 percent which is in the vicinity of Mashonisa which most of us avoid. In this way credit card is as good as Mashonisa but the banks don't keep your ID and bank card like Mashonisa for the duration of the loan but credit card business is more devilish
.bad credit score interest up to 30 percent
.miss payment interest automatic increase to 30 percent
..late payment fee charged
.too much debt on credit bureau...your interest go up to 30 percent
.you miss payment on other debts eg car or home loan credit card interest up to 30%
.any change of credit score lowers... interest go up 30%
.Deb order bounce cred card interest up to 30 %
Credit card companies make the most money ie profits from ignorant consumer s whom they love and call them revolvers ie keep revolving the debt by paying minimum for 35 to 50years. Had relative who was retired died around 70 been with credit card for 50 years and his family is still paying off the credit card debt. You are paying a loaf of bread and a newspaper for 35 years if you still don't get it
Don't borrow to live, borrowed to invest and grow
Are credit cards evil?
Not at all, if you know how to use them they can create you great wealth at zero costs
Hope and wish all success in 2022, let me know if interested in knowing how to use a credit to benefit you and not Mashonisa way