Debt & credit · Module 21

The costly side
of the card

The credit card is convenient – and can become the most expensive debt trap of all.

Spot the traps
Trap 1

Partial payment

Partial paymentonly a part
Very high intereston the rest
Debt growsdespite paying
The rule

Always in full and on time

Pay in fullthe whole bill
On timebefore the deadline
Then freeno interest
Trap 2

The overdraft

Overdrafta hidden loan
Hefty interestoften overlooked
Permanentespecially expensive
The cushion

The best prevention

Emergency fund2 to 3 months' salary
Instead of creditfrom your own reserve
Best protectionagainst costly debt
Good to know

Are you using the card right?

💡 First step: Credit card and overdraft become a costly trap through partial payment and permanent overdraft. Pay always in full and on time and keep an emergency fund, and you enjoy the benefits without ever paying interest.
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This video is no substitute for personal advice.
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