You have this low interest credit card which you do not use
and it’s there only for emergency purposes, like you really don’t have the cash
but you need to purchase something very important, like medicines. Now, you’re
worried that if you sell it, you might get charged with a high interest rate.
What do you do?
Start by building a real emergency fund. Credit card will
never help you. Now what happens if you can’t pay for the balance? You will
only put yourself deeper and deeper into debt.
An unpaid balance where there once was none makes a credit
card company nervous. It can also make other credit card companies you have
accounts with nervous. This will lead to your credit card limit being cut and
the rise on your credit card’s interest.
The only solution is to stop using your credit card and
start building a savings account where you can stash away money for emergency
purposes.
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