But why is it such a big mistake?

The Small Print

In almost any deal that involves credit or debt you ALWAYS need to be considering the small print. We could talk generalities but it might be more illuminating to consider specifics for a second. Let us take a look at credit cards:

With credit cards you might think that you are getting a great interest rate… but that is often just a cover charge. Many credit cards offer a wonderful interest rate for the first 6 months, but after that you will revert to the ‘normal’ interest rate which is far less attractive and will, in fact, be likely to cost you money.

Many credit card companies try to hide their fees. Everyone will miss the occasional minimum monthly payment – even if for nothing less suspicious then forgetting to make the payment. Very few companies are prepared to admit just how much they will charge you for this kind of problem.

Monthly payments are something that is creeping into every day life for such things as credit cards. We’re not talking about minimum monthly payments for money that you owe, what we mean here is monthly payments for using their services. This information will usually be hidden in the small print.

What does any insurance you have on the card cover you for? Many companies will be happy to tell you that there is insurance on the card and any purchases made by it – but they are less forthcoming about what it actually covers.

Credit cards, as in this example. And debt in general, can have a lot of hidden extras. Always read the fine print before signing up – otherwise you are playing fast and loose with your finances.

Pay Attention to the Fine Print is a post from: Best Credit Cards