General Information

Credit Card Debt is the worst type of Financial Trap. Banks & Credit Card Companies simply love this Financial Product. Because they can charge from anywhere between 35-50% per year interest rate from you once you scratch your credit card.

Once you scratch your credit card, you trap into this worst type of trap. Now you enter into the world of negative compounding. Means the Compound interest will work against you. Do you want to know that how dangerous this trap is? Well, more than 75% of Bankruptcies in USA are because of the Credit Card Debt. Want more proof? So every time you scratch your credit card or default in the monthly minimum payment, you increase your probability of going bankrupt and nothing else. Annual 35-50% of interest rate will sooner or later make you poor or even bankrupt.

You have to understand the fact that, if you want to be rich and financially free than Credit card is not a good choice. Credit Card is not the right financial product for you if you want to be Financially free or rich. Rich never use credit cards not because they are rich but that’s why they are rich. Unfortunately, Credit Card companies do so much aggressive marketing that not having credit card in your pocket will make you feel poor.

The reason why people fall in the Credit Card Debt trap is because of lack of Financial Literacy and aggressive marketing by the credit card companies. So are you caught in this trap? if yes than don’t worry, you are not alone on this world. There are literally millions of people around this world who are caught in this trap right now.

If you are caught by this trap than don’t worry, I have a solution of how to escape from this worst type of trap and how to stay away from this trap. I have a strategy for you to escape from this trap.

Step: 1 Cut Down all of your Credit Cards First & stop Borrowing more money -

If you want to escape from the Credit Card Debt trap than first of all you have to stop borrowing more money. You have to cut down all of your credit cards with the scissor.

Step: 2 Build an Emergency Fund & replace your Credit Cards with Debit Card -

Most of the people give an excuse that, I use credit card for an emergency purpose. But let me tell you that, for an emergency purpose you should have an emergency fund and not the credit cards. So replace your credit cards with debit cards and build a sufficient emergency fund.

Step: 3 Pay slightly more than the Minimum amount due -

The Best and most effective way of getting out of the credit card debt trap is, every month you pay slightly more than the minimum amount due. Say for Example, if your minimum outstanding every month is US $ 50 than pay $60, $ 70 or even more. This is the best way to get out of this trap.

So this is how you can escape from this trap.