Credit card debt can make financial hardship worse

Posted at 9:59 AM, Jun 30, 2020
and last updated 2020-06-30 13:33:41-04

The current financial crisis due to COVID-19 has left many people unemployed feeling frustrated & helpless in a time of extreme vulnerability. So 23ABC is dedicated to helping individuals and businesses "rebound."

Many people have turned to 'credit cards' as part of their financial life vest as they try to stay afloat during the pandemic. While it might seem like a quick and easy option to make ends meet experts say you're actually making it much worse.

The interest rates on credit cards are very high and of course, you have to pay it back. Not to mention the $1,200 stimulus check might have given some people the idea that they can add that debt and quickly repay it once things start to return to normal.

However, now we appear to be headed for another slowdown. Experts say if you're in a bit of a financial hole don't start repaying that debt just yet.

David Anderson with Moneywise Guys reminds you a high credit score doesn't mean you're good with money. It simply tells a lender how risky you are as a borrower.