How Does Credit Card Debt Affect Your Finances? Credit card debt is something we all try to avoid, and for good reason. On the surface, it feels like a way to cover emergencies or grab that “must-have” item, but the reality is far more complicated. The monthly payment you think you’ve got under control can quietly spiral into something overwhelming. While you might know about the obvious costs, like high interest rates, hidden consequences can creep up and derail your financial health if you’re not careful. Without a clear debt payoff strategy, your credit card balances can balloon to levels that feel impossible to manage unless you’re prepared for the ripple effects. High Interest Rates That Keep You Stuck When you carry a credit card balance, the interest rate can feel like a trap. Most credit card providers charge interest rates between 15% and 25%, with some climbing even higher. What does this mean? It means that even if you’re making the minimum payment, a large chunk of it goes toward the interest, not the principal balance. With high credit card balances, it’s easy to think you’re making progress by paying your monthly payment. But as the interest compounds, your […]
