620 - The Cost of Caring: Balancing Generosity and Debt

Rounding up your income or leaving debts off a credit application may help you get approved. But it does not give you more money to repay what you borrow. Learn more about credit and rebuilding your credit score with our free online course after the podcast!

If someone asked you right now how much you owe, you'd probably have a number. It's probably low.

If you carry $5,000 on a credit card at around 20% interest, keeping that balance can cost roughly $1,000 a year. Making the minimum payment may keep your account in good standing, but it does not mean you are paying the debt off.

What does it really mean when you max out your credit card?

Why would a lender raise your credit limit when you're already struggling to keep up?