Notes On Personal Finance And Credit Card Essay

Notes On Personal Finance And Credit Card Essay

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Credit Card Importance
There are many different topics about personal finance that are important to me but the one that sticks out is Credit Cards and Debt. This is important to me as a college student because Credit Card companies tend to target students. They do this because they know they are into the new trends and don’t always do research when it comes to interest rates, and polices that credit card companies have. Many students just sign up before reading what they are getting their self’s into. It is important to know everything about a credit card before signing up for example, the interest rates, et cetera. Also, another thing that you should know about debt is what it can do to your future if you are not carful.
First, you must know what a credit card is before signing up for one. On the website Money, Super Market there is an article titled What is a Credit Card by Anita Shargall; at the top of the article she first explains that “A credit card can be used to make purchases, reduce the cost of expensive debt and to earn rewards and cashback. It is essentially a type of loan, where the money you spend on your card is borrowed from a lender, such as a bank or building society. Interest is added to the amount you spend if you do not clear your balance at the end of each month.” When signing up it is important to know how high the interest rates you will be paying is because they do vary depending on the loan. There was another article that I came across that was Forces Behind Interest Rates by Reem Heakal he says that “The interest rate on each different type of loan, however, depends on the credit risk, time, tax considerations (particularly in the U.S.) and convertibility of the particular loan. Risk refers to the likel...

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...tage by purchasing earlier in the billing cycle, giving you a long period of free credit.
There are many different topics about personal finance that are important to me but the one that stuck out was Credit Cards and Debt. This is important for many reasons. Young people should know the effects that credit cards can cause, also all the key components of a credit card. When learning about a credit cards you should make sure to learn about the interest rates, and risks involved with getting a credit card. You should be educated on the type of card you decide to get. Most importantly you need to be ready when you get a credit card because there are many risks involved, the big one being debt. The most important thing to remember is to stay educated and know what you are getting yourself into. You must see all the pros and cons to each situation you put yourself into.

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