How can a gURL accumulate bad debt? Debt works with interest and as this increases, so does what you owe. If you don’t start to make repayments before interest accumulates, you’ll find yourself paying way more than what you originally spent, which sometimes will make it difficult to pay off the balance at all. That’s why it’s always a good idea to pay more than what’s listed as the minimum each month. Let’s say you bought a pair of jeans for $50 using a credit card. If the minimum balance to pay is listed as $15, you should try to pay $20 instead or the full balance if your budget allows. This way, you won’t end up actually having spent $75-100 on those jeans.
Fast Facts: Debt
Friday, August 12, 2011