The worst type of debt is consumer debt. And most consumer debt is paid for using a credit card. With the average credit card interest rate in the mid-to-high teens, consumers with revolving credit card debt are often stuck in a negative death spiral.
One reason why consumer debt is so bad is due to people buying things they really don’t need: a fifth pair of designer jeans, another luxury watch, every electronic gadget imaginable, and so forth.
But egregiously high credit card interest rates are the main reason why consumer debt is the worst type of debt for your finances. If you keep revolving credit card debt, you will likely stay poor forever.
Let’s take a look at the current average credit card interest rate.
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