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Credit Card Debt

Written by Kathleen Gagne
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I hate to drag my parents' names through the mud (which is why I won't name them), but they're a course in What Not To Do With Credit Cards 101. When they were young, they accepted every credit card offer, many with high interest rates. They maxed out all their cards, and ended up in near insurmountable credit card debt.

It is so simple to get into credit card debt. Handing over a piece of plastic in order to pay is like using chips in a casino--it doesn't feel like real money. Many credit card offers play into that as well, making it sound like having a credit card makes you flush with wealth.

The truth is very different. Rack up too much debt on your business credit cards, and you can run your business into the ground. Choose student credit cards with high limit offers that seem too good to be true, and you can land in a heap of credit card debt that will haunt you well after graduation.

Avoiding Credit Card Debt

The best way to avoid credit card debt is to pay off your balances every month. This holds true no matter what the credit card company offers to make it seem like you don't have to. But in case you can't make those payments in full every month, choosing a credit card that offers a low APR will help make sure your balances don't multiply out of control and drown you.


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