Welcome to wealthmaverick

We’re here to help you understand your options around finances.  So, let’s get right in to it.

Credit cards:    If used wisely can be a useful tool in your financial toolbox.  If used poorly can be very painful.

Pros 

1. Easy Access - In comparison to most other loans, credit cards are typically some of the easiest to acquire.  If you have a good credit score with a decent history you have a good chance of being given credit.

2. Unsecured - In the world of loans the difference between secured and unsecured debt means a lot.  Credit cards are considered unsecured which means that if you fail to pay they will typically not come after your assets.

3. Emergency Expense - If you have an emergency and not enough cash to handle it then a credit card can be a great tool to pay for that emergency.

4. 0% Introductory Rate - If you qualify for 0% introductory rate it can be a way for you to pay off a major purchase over time with   no interest.

Cons

1. High interest rate - 15% is the average interest rate in the US right now.  If you have $10,000 in credit card debt and only pay the minimum payment it will take you over 15 years and about $6,800 in interest payments.  Whoa… that comes out to 68%.

2. Small Minimum Payment - That small minimum payment may seem cool but that is exactly how the credit card companies make their money.  A little bit at a time for a long time from a lot of people.

3. Late Fees/Penalties - Besides the high interest rate if you are late for any reason you can be hit with late fees and penalties that may be higher than your minimum payment

4. Default Rate - The dreaded default rate.  If you miss a payment your credit card company may stick you with their Default  Interest Rate which many times is in the high 20’s.  Ouch!

We hope you find our site filled with useful information and resources to assist you in understanding different consequences from your financial choices.