Why Credit Card Debt Is the Worst Kind of Debt

This may be an obvious statement, but since I haven't spoke on credit card debt in a few posts I wanted to reiterate it. Credit card debt is one of the worst kinds of debt! Avoid it as much as possible! People who are not financial savvy or are not informative on personal finances can easily get sucked in by credit card companies. While I put the ultimate responsibility on the consumer, credit card companies know and target people who are unfamiliar with personal finances and get them "stuck" in credit card debt as many people do not know how to properly use a credit card. Once you dig yourself a hole, it may be extremely difficult (or even impossible) to get out of. 

Credit card debt is terrible for a variety of reasons.

1. Credit card rates are extremely high, and there are many other financing options at a lower rate. I have seen rates higher than 30%, and you should never pay those kinds of rates.
2. It is usually very easy to obtain so people can easily abuse it and overspend. This is where many people get in trouble and get into debt without really knowing it.
3. Credit card companies require a very low minimum payment and can keep you in debt for years and years. I have talked with people who pay their minimums who did not realize if they continued that, they would have a credit card balance forever! 

Overall, if you do not consider yourself knowledgeable in personal finances and are not exactly sure how a credit card works, I would recommend holding off until you do the proper research. Credit cards can be a great tool, but the user has to know how to use it.