Protect your finances now with our simple, effective advice.

Using your credit cards without really knowing how much they're costing you, while telling yourself you can afford them, is putting your financial health at risk by allowing yourself to be infected by the money-eating bacteria.

Not always a choice!
Of course, we don't always have a choice: when the dentist sees us in a hurry, for example, or when the refrigerator gives up the ghost in the middle of summer, we click! But we all know someone whose credit cards are maxed out and who drives a luxury sports car they can't afford to maintain properly. 

Money-eating bacteria
Here's an example of how card balances can mutate into money-eating bacteria. Paying off a $5,000 balance at 19.99% interest with a minimum monthly payment of 3.5% ($175) would take 16 years and one month, with an interest cost of $9,349. We can't say it enough: card issuers take advantage of consumers. Imagine having 3 or 4 cards like this, which are common because one is used to pay the other, and the descent into hell begins. 

Late payments
The first consequence of excessive credit card use is that sooner or later you'll fall behind on your payments. It doesn't matter if you pay twice the minimum the following month, the damage is done. Even a small missed payment will show up on your credit file and send your precious credit score plummeting. 

Credit score
The credit score is a snapshot of a borrower's profile. Its number, which ranges from 300 (poor) to 900 (excellent), determines the financial risk the consumer poses to a financial institution. To obtain a car loan, the rating is the first criterion used to determine financing terms.

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