Written By: Manoj Prasad
Up to 40% of Americans are relying on credit cards to pay for basic necessities like housing, food, utilities, etc.
Using credit cards for basics means people are spending beyond their means and can't afford necessities without debt.
Credit card debt prevents saving for emergencies, retirement, big expenses down the line.
Credit cards have very high interest rates around 21% APR, making basics purchased much more expensive.
Each month the credit card debt itself has to be repaid, leaving even less money for necessities.
This creates a dangerous and expensive debt cycle that is hard to escape.
Solutions include cutting a major fixed expense, increasing income with a side job, budgeting strictly, or temporarily adopting an ultra-lean lifestyle.
The goal is to limit spending below your means so you don't rely on credit card debt.
Breaking the credit card dependence for basics is crucial for long-term financial health, though it may require short-term sacrifice.