What is debt? It is money that you owe to somebody. You can have credit card debt, loans, even a mortgage is debt. Although, when you have a hundred thousand dollar mortgage loan, you don't commonly say you are in debt. Credit card debt is very common in the United States. Chances are you have some. If not, you whether don't have credit cards, or are very responsible with them if you do. You may also have debt if you take out school loans, a loan for a business, car loan, or any other type of loan.
Because there are so many separate types of debt, it's hard to say that people in debt shouldn't have credit cards. Person might have ,000 on a mortgage and ,000 on a car loan, but no credit card debt. Should they be okay with a credit card? You have to look at more than just their debt, but also their credit history and wide spending habits and needs.
Credit Cards For People With No Credit
Somebody with a lot of credit card debt is very likely to have a poor credit history. When you take out credit cards, they only way to admittedly avoid credit card debt is to pay it in full each and every month. If you don't do this, interest will start to pile on to the point where you won't be able to pay your bills and your credit history goes sour. If you can't keep control of a credit card, you shouldn't have one.
Think about what a credit card is for. It allows you to have cash on hand when you don't admittedly have it. Ideally, if you used charged 0 to your credit card for general monthly expenditures, you would be able to pay it off at the end of the month when you are paid. The qoute is most people can't. They fee things to their card that they won't be able to pay off at the end of the month.
Today with all the cards gift cash back and other rewards, we want to cash in. Ultimately, this should be the only guess you'd want to use a card. With cash back, it's an instant discount, but when you don't pay off the balance, you'll be paying more in interest.
In the end, it's not debt that should rule whether you should get a credit card. First, you need to rule if you could keep up with paying off a credit card and are financially responsible. Then, you need to rule if a credit card is even worth having. If you are financially responsible and have no debt, is a credit card worth it just to get cash back every month? Probably not.
Are prestige Cards Okay For people Who Are in Debt? Credit Cards For People With No Credit
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