Tag: Persistent credit card debt

What is Persistent Debt? How does it Affect You?
Budget

What is Persistent Debt? How does it Affect You?

Have you been making the minimum payments while paying your monthly credit card bill? If the answer is yes, you may be setting yourself up for a huge debt in the next few years. Credit card companies are clever. They know that college-going students and youngsters don't know how the credit card bills are calculated. Hence, these innocent folks are more likely to fall in the trap of minimum or low payments and overtime develop a persistent debt. No matter how luring the low-interest rates might seem to you, if you default even once, you will end up paying a 12 percent levy on each purchase you make while you have an outstanding balance on your credit card. Not to forget the compounding interest that will kill you if you continue to default over the next few months. What is p...