Dangers Of Credit Cars and How To Overcome Them

Ever thought you had an endless supply or amount of money? You might think it's all fun and games because the only thing you do is swipe a plastic card and it's paid for. But the real answer is that people don't know that they are spending someone else's money, who is the credit card company who gave you the credit card. I want to let you know that you are in danger when you use money that isn't yours. Especially when it's a credit card company's, because they will charge a high interest rate to the money that you spent.

For example: you go to Walgreen's and you purchase a pack of Scooby Doo band aids. It costs $3.20 and you paid with a credit card, and your credit card company sees it show up and gives you a month to pay it off. You don't so they decide to add 20.99 % interest annually until you pay it off. If you decide to not pay it off they will charge you $35 a month. After one month with a $35 fee and the 1.75 % monthly interest rate you will owe $38.87 (the monthly interest rate is the annual rate divided by 12).   After two months of not paying the fee you will owe $75.16; after three months of not paying the fee you will owe $112.09. After one year you will owe your credit card company $431.75.  If this was me , I would want to use that money to by something useful, like an iPad,  but instead you are left using that money to try and pay someone back for using their money to purchase band aids. :(

So now we have learned the dangers of credit cards, now we can be more prepared intellectually with our money. It's your money and you should use your way.

 

 

Here's what you could watch on your iPad if you could afford one:

 

 

--Leon D.