Credit cards

Credit cards will set you back instead of forward – Free Press of Jacksonville

Roger Calwell

By Roger Caldwell – (Source: www.thewestsidegazette.com) – I’m not a financial expert, accountant or accountant, but most people in America are in debt. Many have to pay a house and a number of other bills each month, and this week’s article focuses on credit card debt. Credit cards are a way for the United States to buy items and things they don’t have money for.

Debt is a reality in 2022, and young Americans are learning from an early age to charge fees when they have no money. When they are hungry, they charge for food, when they want new clothes, they charge for it. The majority of that stuff they don’t need, but they’re consumers, and that feels good.

It’s obvious that many Americans don’t pay attention to or read the fine print on their statement. They don’t know when payment is due. Credit card is a vicious cycle and many people are late when paying their monthly credit card bill.

According to “Wallet Hub”, 42 million Americans expect to miss credit card due dates in 2022. There are many different reasons such as lack of money, big spenders, not not paying attention to the due date, too many bills and in some households 5 to 10 credit cards. The average credit card balance in most households is $8,000, and by 2022 Americans have $859 billion in debt.

As many Americans struggle to pay their due on their balances, there is a negative chain reaction from the credit card company. Each time the customer pays their credit card late, a late fee of $38 applies with a grace period of only one day. There is now a higher penalty for using the credit card on new purchases, and the average APR is increased despite everything costing more.

If a customer has 5 credit cards and is late on all of them during the month, they pay the credit company an additional $175 each month in late fees. When the customer only pays the minimum payment, there is a disclaimer on the statement that it will take 11 years to pay off the credit card. The company also charges interest and other miscellaneous fees.

Very few credit card holders pay off the entire balance each month. Most Americans are stuck, and they make a payment every month, and they get caught in the cycle of credit card debt.

Following the pandemic in 2022, it now costs 19.5% to buy a new credit card. Credit companies charge nearly 20% to use their money, and if you have a bad track record, everything costs more.

Many Americans don’t understand why they pay every month and their balance stays the same or goes up. It is obvious that they are late, only paying the minimum payment and have high penalties on their invoice.

If Americans are doing poorly paying off their credit cards, black people are worse off.

Blacks should study their credit card statement each month and pay by the due date. Pay off the card in full each month if possible and pay more than the minimum payment. Reduce the number of credit cards in the household and reduce balances. Control when you use your card, and it should only be used in an emergency.

Discipline is the key to staying out of credit card debt. There are times when you need a credit card but pay it off in full at the end of each month. Getting out of debt isn’t easy, but your credit score matters when spending money on important items and capital equipment. Talk to a financial planner