(My response to:) The Credit Card Debt Lie

It’s safe to say that at some point in time we have once been told don’t get a credit card.I know I have. But in today’s society it seems as though not having a credit card can hold you back from many things like: renting an apartment (you can’t rent without a credit report), renting a car, purchasing a house, signing up for a phone service, getting a job (background checks not only check your criminal record but you credit score as well)… To name a few.

Perhaps, the advice which should have been given is to understand interest rates/APR and how interest rates have the ability to change how much owed when not paid on time. The value of one dollar is precious and mustn’t be used carelessly. 

APR (‘Annual Percentage Rate) – APR’ The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.

Daily advice:

  • Consider getting a credit card with 0% APR and changing cards when the interest rate is no longer zero. Doing this will help you to avoid paying additional funds for your loan. Most importantly make payments on time. Every missed payment is documented to the three credit reporting agencies. 

in·ter·est rate


plural noun: interest rates

the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

“reduced interest rates encourage people to spend money on home improvements”
Source: The Credit Card Debt Lie