Credit Card Debt Management: A Beginner's Guide

Did you know that credit cards have a high interest rate and whenever you use them, you borrow money at an elevated cost? This course begins by discussing credit card functions and how to manage debt effectively. You will discover that even though credit cards are unsecured loans with hefty interest rates, people like them because of how easily they can access their funds. They are also fantastic alternatives for online transactions. Credit card debt is revolving. We look at some real-world instances of how credit card interest may trap you in a cycle of debt to demonstrate the power of compound interest and the distinction between compound and simple interest.

The course will next teach you how to create a credit card action plan to assist you in achieving your financial objectives. First, you will explore debt-reduction strategies such as ‘debt snowball’ and ‘debt avalanche’ and learn how to use a ‘debt snowball calculator’. Then you'll gain knowledge about bank fees and how you can save hoards of money by avoiding them. We will also explain the benefits and drawbacks of credit and debit cards so that you can decide which one to use to monitor and control your spending.

The course highlights the necessity of an emergency fund in debt repayment. You will learn to prepare for emergencies such as medical bills, car repairs, job loss and other critical needs. Then you'll study how to develop a solid emergency fund, beginning with calculating your monthly expenses and ending with automating the fund from another account. Finally, you'll understand the Fair Isaac Corporation (FICO) score and learn how to determine your FICO score range. A credit card may be an acceptable option if you are financially responsible and can pay off the bill in full before accumulating interest. Become savvy with credit cards and begin this course today.