Most households borrow money. Ever take out an auto loan, personal loans, student loans, or a mortgage? If you borrowing money appropriately, a loan can help you build wealth or accomplish an important goal. However, if your debt reaches the point where your payments eat up a large part of your income, then your debt is preventing you from creating wealth and harming your financial health.
Credit Cards are a convenient way to pay for bills, order items on the internet, or pay for vacations. It is almost impossible to travel without a credit card. But if you rely on a credit card to pay for emergencies or to make up the difference between your income and spending, then your credit card debt and all the interest can spiral out of control.
If you don’t pay close attention to how your debt fits into your budget, then it's easy to end up deep in debt. At times, taking on debt is the best available solution to financial hardship, but always aim to do so with a plan to pay off your debt. If you are already in debt, then use Bills.com Debt Payoff Calculator to find a personalized debt relief solution.