"Your financial statement is ready."

Kumail Nanjiani saying,

Are you worried about your debt that keeps piling up?

A few handy rules of thumb will help you avoid debt traps from credit cards, student loans, and subscription fees.

Want To Buy Something Fancy?

  • Does everyone around you have a new iPhone?

  • Would you like to buy one, but you don't have enough savings?

  • No problem! Just pay for it with a credit card!

  • You can afford what you want right now at no additional costs*!

A meme of Arthur being chased by a group of dolls, over the text: "My credit card statements increasing."

Really? No additional costs?

Sounds amazing, doesn't it?

*Except that's almost never true, so watch out for credit card features that companies use to attract clients like you. Some of these add-ons can lead to additional costs and affect your credit ratings.

What you're attracted to:

  • Bonus points

  • Discounts

  • Rewards

  • Minimum payments

  • Instant money

What you should be careful about:

  • Fixed fees

  • Interest rates

  • Penalties for late payments

  • Increasing debt

  • Credit score impact

Pay Your Bills

Balance due on unpaid credit card bills will grow over time! That's how credit card companies make money.

Always make sure you can pay off a credit card bill IN FULL and ON TIME!

Otherwise, you're just kicking the can down the road to your next bill (and accruing more debt).

Jack Sparrow Being Chased

Quiz

If I spend $1,000 dollars on a credit card for an iPhone and can't pay in full, how will my payment grow?

Late payment fees

APR (Annual Percentage Rate)

ATM fees

Overdraft fees

Get Ahead Of Payments

Student Loans

Every dollar you borrow will have to be repaid with interest, so you could spiral into more debt if you don't pay them back.

Pay off your loans with recurring automatic monthly payments so you don't even have to think about it!

The Great Gatsby toasting with a champagne glass. The text reads, "Thank you student loans! How can I ever repay you?"

Subscription Fees

Monthly subscriptions for services can be sneaky and add up quick!

Subscriptions are usually set up to automatic payments to a credit card, so keep a list somewhere or it'll be tough to keep track of them all.

Gru giving a presentation on how much it costs him to subscribe to his 10 favorite Twitch streamers

Take Action

Buzz Lightyear from Toy Story telling Woody,

Debt isn't a personality trait! So don't make it a part of your personality by letting it hang around.

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This Byte has been authored by

HY

Helen Yu

Experienced Associate

JK

Jana Konuchova

PwC Manager

CM

Connor Murphy

Accountant

JS

Justin Silvera

Risk Assurance DAT Experienced Associate