Chapter 15
Keeping Tabs on Credit Card Spending
IN THIS CHAPTER
Discussing how to use credit cards when budgeting
Building credit without taking on additional debt
Finding out how to take advantage of credit card benefits.
As I write this, the average American household has an estimated $8,942 of credit card debt. Using credit cards can help you when your bills are bigger than your paycheck (such as during times of inflation), but it can hurt you as well.
As I explain in Chapter 10, credit card debt is a revolving debt, which means you don’t have to pay your balance (loan) every month. Instead, you can charge your maximum credit limit and have to worry about making only your minimum payment. Your credit card debt is also considered an unsecured loan, which means you don’t have to put up collateral like a car or home to get the loan.
Only having to pay the minimum amount for a payment sounds dreamy, and it is. You can charge $1,000 and only have to worry about paying $25 back next month? Score! You can worry about paying the rest later, right?
Your credit card company is counting ...
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