Credit Cards - Good or Evil?

As I sit here working on consolidating (or trying to figure out how to consolidate) someone’s credit cards, I am wondering what they have to show for $30,000 in debt. Mostly “toys” they purchased without realizing how much it really costs them when they take into consideration the interest they’re paying by carrying a balance.

Credit cards are great when you use them to purchase larger items that you do not want to carry the cash for, or for reserving cars, flights and hotels for travel. But they can be pure evil when you purchase something that you can’t pay off that month, and then the treadmill starts.

If you look at your credit card bill, the interest rates vary from 19% or higher on some cards. Interest starts accumulating on purchases after your grace period (usually between 21 and 28 days). Plus if you don’t pay one month in full the next purchase has interest accumulating right away!

Remember to only use your credit card to purchase something if you have the funds to pay it off within the month. Credit card debt is a terrible treadmill and normally ends in a hard landing.