Avoid Almost Bankruptcy-Level Credit Card Debt by Avoiding This Common Pitfall

By: Manoj Prasad

I only paid the minimum monthly payment on my student credit card

Minimum payments protect your credit score but don't pay down your balance

Interest keeps accumulating on the remaining balance each month

This causes debt to snowball quickly out of control, known as a "debt avalanche"

A friend warned me I was digging a financial grave with minimum payments

I started paying off my full balance monthly to avoid interest charges

When money was tight, I used debit cards and cash more often

Many student checking accounts now have no overdraft fees

0% intro APR credit cards can provide short-term financing if you have a payoff plan