Credit Cards Explained: How to Avoid Paying Interest | Episode 6

Today, we’re breaking down one of the most common financial tools: credit cards. In this video, I explain how credit cards actually work, what happens when you make a purchase, and most importantly, how you can generally avoid paying interest by understanding your statement balance and payment due date. We’ll also cover credit utilization, building credit, minimum payments, rewards, and some of the most common credit card mistakes to avoid. In this episode, we cover: 💳 How credit cards actually work 💰 Statement balance vs. current balance 📅 How to avoid paying interest 📊 Credit utilization and your credit score ⚠️ The problem with minimum payments 🎁 Credit card rewards ✅ Simple habits for using credit cards responsibly Sources Mentioned in This Video: 📊 Federal Reserve Bank of New York – Household Debt and Credit Report https://www.newyorkfed.org/microecono... 💳 Consumer Financial Protection Bureau – How Does My Credit Card Company Calculate the Amount of Interest I Owe? https://www.consumerfinance.gov/ask-c... 📚 Consumer Financial Protection Bureau – Credit Card Key Terms https://www.consumerfinance.gov/consu... Be sure to like and subscribe so you don’t miss future episodes! If you have suggestions, feedback, or ideas for future videos, fill out the Google Form below: https://docs.google.com/forms/d/e/1FA... Thanks for watching, and I’ll see you in the next episode!