3 things to never do with a credit card (Level 1)

Walter Cavanagh once had more than 1,400 credit cards. That is very unusual. Most people have only a few cards. Credit cards can help with safe shopping and emergencies, but they can also lead to debt. When you do not pay the full amount every month, the card company charges interest. Interest is the cost of borrowing money. The yearly interest rate is called APR. A higher APR means you pay more. For example, a $1,000 balance on a card with 35% APR costs about $29 in interest in one month. A card with 18% APR costs about $15. If you pay only the minimum, $1,000 can take over 18 years to pay off. The best way is to pay the full balance each month. If you have debt on several cards, pay extra toward the card with the highest APR first. Do not open too many cards.