By Christopher
BillSavings.com Brief: Credit card debt not only negatively affects your finances, but may also negatively affect your health as well. Consumers with substantial debt may experience stress, anxiety, as well as depression. This is why it is vital that cardholders pay close attention to their account including any late fees as well as to the fine print associated with their specific card.
Credit card dangers are all too real. This is because credit card debt can cause more than just harm to your financial future, it can also cause medical problems such as increased anxiety, depression, and heart attacks. If you have managed to avoid credit card debt than you are doing much better than those who struggle each month to make the minimum payment. However, if you do have credit card debt it is important that you understand what debt can actually cause. Below are some of the dangers associated with credit cards. Remember, the more debt you owe, the longer it will take to pay off. For example, if you have more than $10,000 in credit card debt, you are essentially paying the same each month as you would for a used car. At least with the car you have a tangible asset, while with credit card debt you essentially pay a company each month to send you a bill reminding you of your financial irresponsibility.
Medical dangers
There is a common saying that money does not buy happiness. However, someone who did not have money must have coined the phrase. Of course, money can not buy family, friends, or love, but it can reduce the stress caused by debt. In fact, carrying substantial credit card debt causes more than just stress. If you are a student for example, the anxiety of not being able to pay your debts can often cause severe anxiety and depression, which in turn will negatively affect the way you study and perform in school. Of course, these medical dangers are not only limited to college students but also anyone with a debt that they can not easily pay off. Furthermore, carrying credit card debt will also negatively affect other areas of your life such as when you apply for a mortgage. Unfortunately, many consumers who have debt turn to unhealthy habits such as drinking and smoking to help relieve their stress. If you have credit card debt and notice you are experiencing medical problems including insomnia, seek the advice of a medical professional. While debt can cause a variety of both financial and medical problems, it is not worth losing your health or life over.
Fine print
There is a good reason that credit card companies choose to display their rules and regulations in small, fine print. This is because most consumers simply skip over the fine print in lieu of the larger, bolded statements mentioned at the top of the offer or bill. For example, one of credit card dangers is not reading the fine print when a premium credit card offer comes in promising a certain interest rate or specific reward. However, when a consumer applies for the premium card, they may not qualify for it and instead receive a less than favorable credit card from the same company. Unfortunately, many consumers simply assume that the card they receive is the same card in the initial offer.
Late fees
When you are late paying your credit card bill, you will not only incur a late fee sometimes as much as $39, but you will also hurt your overall credit score which will then force you to pay a higher interest rate on additional purchases such as a car or home. This is why it is important to not only verify that your payment is received and processed before the due date, but also that you routinely check your credit score for mistakes. While many credit card companies will send you an e-mail reminding you about a payment, in reality they want you to be late so that they can receive additional funds. Furthermore, if you are late more than once, depending on the credit card company, you could also experience a raise in your interest rate which will make paying off your debt that much harder. Remember, the sooner you take control of your credit card debt, the sooner you can achieve your financial goals.
8/26/2008
