Avoiding Credit Card Disaster

One of the biggest challenges for people to overcome when
they first determine to start building wealth and putting
income away for their future is a hulking mountain of charge
card debt developed over several years.

With balances of
$10,000 or $20,000 or more, at 20% and 30% interest, they
find themselves paying upwards of $500 monthly in interest
expense alone, never making the balance of the charge card
debt decrease, adding even more defeat and pain to the cycle.

This “negative amortization” as it’s addressed – that’s when
you start paying interest on the interest you already owed as
you didn’t make a big enough payment to cut the balance – will
mostly be against the law due to recent regulations set in place
over the last few years. This is precisely why you should pay off
high interest charge card debt.