3. Rates rise with unpaid balances
That great annual percentage rate (also known as APR) you thought you had on your credit card may have been an introductory rate, subject to increase if the balance is not paid off in full. That’s why an 8 percentage APR can effortlessly skyrocket to 29 percent in an instant.
“But that will never happen to me,” you might say. “I’ll pay my balance in full as soon as it’s payday.” Even if you have the best intentions in the world, unexpected and quite expensive costs such as car or home repairs can pull you off the road.
