You’re Not Alone: 8% of Americans Make This Expensive Credit Card Mistake

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A new study just revealed that 46% of Americans continue to make this costly credit card mistake every month. Yikes! Many of us are working hard to reduce our spending, and one way to do that is by monitoring our credit card usage. But if you are making this expensive credit card mistake, then your hard work may be going right down the drain…

The notion that carrying a charge from month to month will raise your credit score is among the worst credit card fallacies.

46% of Americans wrongly think that having a little balance on their card instead of paying it off each month will improve their credit score, according to a new NerdWallet study.

That expensive error was made. Actually, interest is charged on all revolving debt, regardless of the amount. Instead of the amount of debt you carry over to the next statement month, those are frequently calculated using your daily average balance. Additionally, owing money might harm your credit rating.

In terms of money, striving to pay off as much as you can is advantageous, according to Paul Siegfried, senior vice president and head of TransUnion’s credit card division.

The American people are experiencing “recession fatigue,” according to Personal Finance.
A “dangerous combination” of inflation and rising rates exists.
You may manage your unpleasant credit card debt by following these measures.

Revolving debt should typically not exceed 30% of a borrower’s available credit, according to credit experts, in order to reduce the negative impact that excessive amounts can have on your credit score.

However, despite the fact that interest rates on credit card balances are rising, a Bankrate research found that almost half of cardholders carry credit card debt from month to month.

With the Federal Reserve continuing to boost interest rates in an effort to battle inflation, credit card rates have already surpassed 18% and are anticipated to reach 20% by the start of next year.

According to a separate estimate by WalletHub, these credit card users would end up paying around $20.9 billion more in 2022 than they would have otherwise due to the rate rises so far.

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