
Questions from my Gen Z kid: Pay now or pay later?
Once you start carrying a balance over from month to month, card companies will charge you interest, often as high as 26-29% for cards with the most enticing perks. Soon it can become almost impossible to payoff the balance and the card companies can collect thousands of dollars in interest charges from you every year. This can be a financially dangerous path because it can snowball into a situation that is hard to get out of. A lot of credit card debt can financially cripple a young person who is just starting out.