Create Motley Credit Card with airSlate SignNow

Create motley credit card

girls credit cards can be an incredibly useful financial tool but they can also get you in tons of trouble that's the best way to handle your credit card my name is dan Caplinger I'm The Motley Fool's director of investment planning and today I want to take a look at the one thing every credit card holders should do right now and that's basically pledged to make sure that you will not carry a balance on your credit card any longer than you have to now when you take a look at a credit card it's really a very useful thing if you pay off your balance every month it allows you to aggregate all of your expenses into one place you can get a free float for up to a month on the purchases that you make before you have to pay for them in most cases that's an interest free float because of the grace period that most credit card issuers give you and so it can be really a handy tool but where people get into trouble is by carrying a balance because that's what gets those high interest rates started when you take a look at the profits that big card issuers like chase like city those companies make on their credit card divisions they're huge and the reason more people pay those high interest rates on their revolving balances then those companies lose from defaulting customers and so it's something that is highly profitable for the banks but definitely not profitable for you now what's the question how do you solve that question because it's something that can be really difficult for people but the idea is really that credit card debt is just about the worst type of debt that you can have in comparison to other types of debt that carry much lower interest rates for instance those home mortgage rates are much lower you've got company you've got Fannie Mae and Freddie Mac making a market in mortgage debt and because of those federal guarantees that are involved the implicit guarantees that are involved in that market you've got a situation where those rates are much lower and you can borrow much more cheaply even auto loans in some cases will give you much low rates on what you'd pay on a credit card and unfortunately with the Federal Reserve starting to raise interest rates it's something that's only going to get worse going forward and that's really what makes getting those credit cards paid off really the first element of living of happy and debt free life now for more on your finances and making sure you make your money work as hard as it possibly can for you be sure to stay tuned to fool com thanks for watching cool