Debt in general has always been a scary concept to me. As much as people like to see it as something of a good thing because of the opportunities it presents, it still has the word “Debt” in it. No matter how much you glorify it, you’re still going to have to work hard to pay it off in the long run. There is no “good debt” of “bad debt”, as nerdwallet likes to emphasize.
Debt is still debt. It’s still a financial stain and it scratches at the back of your mind when that part of your brain should be wasting its better time handling the finances to come, not the finances that have happened already.
Credit card debt is worse.
Credit card debt comes with double-digit interest rates
This just makes this kind of debt the most expensive kind of debt there is. It has APRs in the 20s and the teens all while personal loans, mortgage and education would generally charge their interest in the mid-single digits. Do you really want that on your pile of other debts that you need to look after too?
Even the minimum payments will take you years to pay
They put it there, you know? On the credit card statement, they put it there, how long you were going to pay your debt for and it says how many years too. The number of months and years are stated there and that includes the interest that will surely make you feel like you paid for twenty televisions instead of one if you calculate the entire money you are supposed to pay for years.
Yes, you can argue that credit cards are a sure fire way for you to pay the more needed things like school tuition, emergency items that need to be bought and so on. However, keep in mind that these companies are making money just from your salary that you shave off for them. What you owe them is generally a lot MORE than what you initially loaned from them. To someone like me, who hates debts more than anything, that kind of financial strain is torture. As much as possible, I would like to NOT have any debts and make no loans, no matter what. If I need money, I will take some off of my savings that I kept away knowing something like emergencies will happen.
That, or I ask money from family or friends, not as loans. I will not let them lend me some money but I will ask it for charity, as selfish as that may seem. I won’t ask for much but I WILL try to appeal on their generosity as well as pity. Be smarter about where and how you spend your money. Money doesn’t come from trees, they say, no matter how much we want to try planting money into soil just to see it happen.