Credit card debt
is when you owe money to a credit card company for purchases you have made using your credit card. The credit card company charges you interest on the amount you owe, which can quickly add up if you do not pay off your balance in full each month. This interest rate can be as high as 30%, making it difficult to pay off your debt.
Credit card debt can have a significant impact on your finances. If you have high credit card debt
, it can lower your credit score, making it harder to get approved for loans or credit in the future. Additionally, you will end up paying more money in interest charges, which can add up to thousands of dollars over time. It's important to understand the impact of credit card debt and take steps to eliminate it.