10 Of Life’s Biggest Financial Traps To Avoid At All Costs
Steer clear of these to build wealth.
Between student loan payments, unexpected bills, and most recently, rising inflation, life can get pretty expensive — regardless of which stage of it you may be in at the moment. But the good news is is that not all financial pain in life is obligatory. By avoiding some of the most common money traps and using the resulting savings to stay out of debt and plan for retirement, building significant wealth over the long term becomes nearly inevitable. So to build that long term wealth, avoid the following 10 financial traps.
Money Trap #1: Credit Card Debt
This one is rather obvious but still worth repeating given that the average APR on that piece of plastic is north of 16%. Further, credit card debt is widespread. As of May 2020, CNBC reported that nearly half, or 47% of Americans, carried credit card debt. And the average family carries a $6,270 balance. Even more alarming is the fact that even before the pandemic, CNBC reported that 23% of Americans were going into debt to pay for necessities.
What makes this particular brand of revolving debt especially dangerous is the fact that the balances often grow more rapidly each month than most consumers are able to pay them off in full. And I get it. Life happens. But in order to avoid…
