Ambareen Musa, Founder and CEO of Souqalmal.com, discusses why it’s important to pay your outstanding credit card bill in full, and how making minimum payments can land you in a debt spiral.
What happens when you make the minimum payment on your credit card? Why do so many credit cardholders find themselves caught in a debt spiral? And why does it take months to repay even the smallest outstanding balance on your card? While exorbitant interest rates are the primary culprit, it’s the wrong approach towards credit card payments that will land you into serious financial trouble.
If you have ever been tempted to pay the bare minimum on your credit card, you will know it can bring temporary relief because you feel you have at least met your financial obligations. But do this on a continuous basis and you will eventually discover it is one of the worst financial mistakes you can make.
Here’s an example to help you understand why…
For full article go to The National.
