By Published On: September 27, 20211.9 min readCategories: credit repair and credit health, Economics and Money, Finance Therapy

Most installment and secured accounts like home loans and personal loans for business, while they can be stressful, are not often the reason we have money struggles, even if we are living a little out of our price range.

What gets us, what lowers our credit scores and fiscal health, is often the revolving accounts, like credit cards.

Revolving accounts will most certainly hurt you more because first, they are not tied to an asset so they have no value barring their interest, and they are reused so it is a constant door of debt. That one credit card that you pay down, for instance, is also the same one that you use again and again. 

This type of debt causes chronic financial struggles and with it, chronic anxiety, depression, and stress.

This is the type of financial struggle that many couples fight about – in fact this is a number one couple fight and a number two cause of divorce.

The best thing to do for credit cards is to keep a zero or near-zero balance on those cards. They should be for emergency or for a purchase you can easily take care of in a month or two, without a late payment of course.

If you want to better understand credit cards, which by the way, that debt is a whopping 35% of your credit score, then head over to THIS blog on how to lower your debt .

Another blog to review is THIS ONE on sneaky ways late payments climb into your credit score even if you pay on time.

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Michele Paiva

Michele Paiva is a Licensed Psychotherapist, Recovery Coach and Certified Finance Educator, with 30 years experience in helping others to see their true value, and the truth under their trauma, to love themselves and springboard into a full, rich life. Rewrite your money story and take control of your financial and emotional health.

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