Whether a person makes minimum wage, or over $100,000 a year.
Some people are flat out not good with money.
A clear sign of this is someone with a stack of credit cards.
There is no reason anybody needs several credit cards.
This is why credit card companies make such a killing on interest rates and make billions each year.
They cash in on the fact that most people are not good with money or finances.
The sad truth is, most really aren't and can't handle a budget.
It is so easy to swipe a credit card and pay later, but the reality is, most people just make the minimum payment, and end up paying at least three times what the item originally cost.
Another fact is that when the average person buys an item on credit, he will justify the cost and say "I will always pay more than the minimum", but that rarely happens.
Something always comes up, and he will pay the minimum, sometimes late, and end up having a higher interest rate.
If he could just put a little money aside each paycheck, but again, we are talking about people who are bad with financial management, and that is where these companies make a killing.
How can you get out of debt? Don't get a credit card! If you have one, cut it up.
Get a lower interest rate.
If they say no, switch companies and get one with a lower rate.
Another company would love to have you and will give you even a few points less interest.
But stop charging on the card, and always make the largest payment you can, even if that means only paying $5 extra.
Every extra amount matters.