Just as there are many benefits to having credit cards, there are many risks of falling into debt and even a few small mistakes could lead to a longer period of repayments. Here are some common debt traps to avoid:
- Interest Free Period – The amount of time you have before you start paying interest is often even more important that the rate on a credit card.
- Higher Limit Than Needed – Credit cards offer a great amount of flexibility when it comes to paying off big expenses, but people can end up abusing that convenience and often end up with a crushing debt load.
- Minimum Repayments – Many people see minimum repayments as the required amount they need to pay off their debt load every month, which often leads to poor money management and keep you in debt for the longest time.