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DB-Credit Cards

DB-Credit Cards

Q Discuss the uses and misuses of credit cards. What are some disadvantages of using credit cards? Have you personally had issues managing credit card debt? Share as much or as little as you desire. How does this issue relate to the debt payments to income ratio discussed in the chapter? Post a response and reply to at least one classmate.

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Credit cards are a great way to have an open line of credit that you can use at your leisure to purchase items and pay for them at a later date, into broken down payments if needed. A common misuse of credit cards is when people max out the cards spending limit and then only make the minimum required payment on the card. This drags out the payments by years, charges you a very large sum of interest and is awful for your credit score.