It's hard to imagine, but even billionaire Mark Cuban from the popular show "Shark Tank" has suffered from problems with credit card debt. Cuban, who achieved billionaire status in 1998 when he went public with his online streaming company, Broadcast.com, said that he suffered from money problems in his 20's.
In a recent interview, Cuban admitted that the most difficult lesson he ever had to learn involved tearing up his credit cards. He said he had a habit of putting a charge on his cards, then not being able to pay it back and having to rip them up afterward.
Cuban highlighted the biggest problems with credit card debt:
- The debt adds up fast
- Borrowers have to pay back a lot more than they planned if they don't pay the cards off quickly enough
In giving advice to credit card holders, Cuban said that "using a credit card is okay if you pay it off at the end of the month." He reminded borrowers that the 18 to 20 percent or more in interest payments will cost borrowers more than they could earn in their jobs.
Cuban's logic makes sense. If you consider a long-term investment that's making 10 percent annually, and you consider your credit card debt that's getting charged 20 percent annually, it's clear to see that the wisest place to direct your money is toward paying off any credit card debt you're carrying.
Are you currently underwater with credit card debt? If it's not possible for you to pay your bills due to the amount of money you're earning, you might consider bankruptcy as a viable solution. A King County debt relief attorney can offer guidance and advice pertaining to whether the bankruptcy process -- or another debt resolution strategy -- might be appropriate legal and financial medicine for your situation.