Summary
The article explains that having credit card debt doesn't necessarily mean someone is bad with money. Financial educator Rita-Soledad Fernández Paulino emphasizes that debt is often used during emergencies or unexpected situations. It also challenges myths about debt, encouraging people to manage their finances wisely and understand how credit works.
Key Facts
- Credit card debt is often incurred due to emergencies like car repairs or medical bills.
- Many people who have debt are not simply poor money managers; they may have faced unpredictable life events.
- Avoiding credit entirely can be due to misconceptions or past experiences, but having a credit card can positively affect your credit score.
- Understanding how debt works can help in managing and using credit cards strategically.
- Paying off debt is possible with a surplus of money after expenses, which can be used to reduce debts faster.
