Want to know a secret? I’ve been in debt.
Now you heard correctly. I had a lot of debt and it was definitely one of the most stressful times in my life trying to figure out how to pay it off. So how did I get there and how did I get out?
The main reason I ended up in debt was because I didn’t fully understand how the system works. When I got my first credit card, I went on a shopping spree! Now I knew it wasn’t free money and that of course I had to pay it back, but I got caught in the minimum payments trap.
You think those minimum payments are going towards the money you borrowed, but really, it’s only going towards the interest. So if you keep making the minimum payment only, you will NEVER - I repeat NEVER - pay off that credit.
In fact, your balance is going to go up and up and up each month, even though you’re making regular payments. And that, my friends, is how they get you!
Understanding how debt works is what makes the biggest difference between feeling overwhelmed by your debt and managing and using debt to your benefit.
Learn more here!