Having credit card debt is probably the easiest way to prevent you from retiring early.
When you look at what you are charged on a monthly basis for having a credit card balance, from 11% to 20%... there is no way to save money.
Why? If you do have an extra thousand dollars... if you stick it in the bank you might get 1% in interest... you are much better off taking the thousand dollars and paying down your credit card balance, and saving 11 to 20% in interest charged.
If you have a savings account and a credit card balance... you are truly foolish.
If you don't believe me, compare the number of advertisements for credit cards versus certificates of deposit
The banks " especially the ones deemed too big to fail" would much rather have you send them 11% to 20% every month.
Having said that, you should have credit cards, if you pay off your balance every month You earn miles for vacations, and getting cash back based upon how much you spend,
You should pick one with no annual fee.
The one exception that we personally make, is the Southwest Airlines rapid rewards card...it costs $69 a year.
Why do we like this card, stop and think how handy it would come in if you had to fly across the country for a funeral or a medical emergency.
Southwest has no blackout dates, does not charge for your first two pieces of luggage, you earn 50,000 miles after spending $2000 in the first three months, they do not charge you a change fee.
Why can they give you such a good deal?
The ave their own website... You will not find them on, Expedia, Hotwire, Priceline etc.
By eliminating the middleman... including the owner of this website... they pass the savings on to you.
Using this as a source the average American household owes $15,266 in credit card debt.
As a nation we owe close to $1 trillion on credit card debt.
Thanks for reading credit card debt