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Credit Card DebtOf all the types of debt to get rid of, credit card debt is the most urgent. Credit card debt is dangerous for one big reason: credit card debt has the highest interest payments of any type of debt you’re likely to have. As of 2004, the average household had over $9000 of credit card debt. At 13.9% APR and the minimum payment, that would take over 6 years to pay off completely. Of course, odds are you’ll need to charge more in the meantime. And if you miss even one payment, the cards can raise your rates. Credit cards are doubly dangerous because they put you in a difficult situation. Credit scores are calculated based on many factors, but the big two are how regularly you make your payments and how much of your credit limit you use. That means that your credit score will continue to look good, even as you get deeper and deeper into debt. |
