Level 3 (Revolving Debt)
Revolving debt involves credit cards, which can be a convenient way to pay for things but can also lead to debt if not managed properly. Here's how they work:
- When you use a credit card, the bank pays for your purchase, and you have to pay them back at the end of the month.
- If you don't pay the full amount, interest is added to your balance until you do.
This means that even small purchases can quickly add up and become difficult to pay off.
Remember: Keep track of your spending and always pay off your balance in full if possible.
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Content Curator | Absurdist | Amateur Gamer | Failed musician | Successful pessimist | Pianist |
Just like income, debt has levels, and each level changes how you live, what you can do, and how much freedom you really have.
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2. Debt Awareness:
Interest Rates: Comprehend how interest affects loans and credit cards
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