It would be surprising to hear that someone obtained such a high line of credit that it took 20 years to pay off, while not understanding how credit works, but I guess that is possible
Disclaimer: I've never used a Credit Card and have no intention to do so.
I don't really see the complexity/confusion with credit cards and I struggle to see how people get into poor financial positions with them.
Credit Cards are effectively mini-loans. You spend $100 here, $200 there, they get bundled on a credit card which had an interest rate applied to whatever you purchase if not paid back by the defined date.
You can "win" on credit cards by always paying it back and reaping some of the rewards (discounts, points, etc).
You can "lose" on credit cards by paying it back late (incurring the interest+if applicable, late fees).
Am I missing something? That seems like the principal behind credit cards. People who get wrapped up in the credit system likely already are in a poor financial state, since they use credit to "get by".
Apparently some people don't understand some combination of interest existing or that the minimum payment is less than the interest owed or that you have to pay back the loan whatsoever. This is everyone else's fault, they insist.
I don't really see the complexity/confusion with credit cards and I struggle to see how people get into poor financial positions with them.
Credit Cards are effectively mini-loans. You spend $100 here, $200 there, they get bundled on a credit card which had an interest rate applied to whatever you purchase if not paid back by the defined date.
You can "win" on credit cards by always paying it back and reaping some of the rewards (discounts, points, etc).
You can "lose" on credit cards by paying it back late (incurring the interest+if applicable, late fees).
Am I missing something? That seems like the principal behind credit cards. People who get wrapped up in the credit system likely already are in a poor financial state, since they use credit to "get by".