Credit Cards
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Credit cards have a substantially higher interest rate compared to those of mortgage and car loans. The average credit card loan is about 14.95% while the average car loan and mortgage loan is 4.27 and 4.51 respectively. Credit card interest rates can be as high as 79.9%
which is unheard of with the other types of loans. The car loans only range from 12-22% maximum. Mortgage interest rates have never exceeded 20%. Clearly the lenders are exploiting the credit card users for profit.
Oftentimes, a credit card company will specifically target college-bound students. They claim to help you, but they neglect to mention their services come at a cost, which can become exponentially costly in the long run. Young people don’t completely understand long-term interest rates.
Looking from the outside you would think credit cards are a ticket to being affluent, but there are many complications that come along with having one. It takes an enormous amount of responsibility. But even the most responsible adults encounter dilemmas. As shown before it is a way for banks to profit off of your mistakes. Take your time when walking along this thin sheet of ice over this problematic lake, because when it comes to credit cards, evidently it may be better to try to avoid them