1 in 3 Millennials Make This Huge Financial Mistake Each Month

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  • Many millennials struggle with debt, and credit card debt is the most common type.
  • Find out how to avoid a mistake that many millennials make when using credit cards.
  • If you have credit card debt, a balance transfer card may be able to help you pay it off sooner.

Not paying off your entire credit card balance can have negative consequences.

Credit cards can be a useful financial tool. But it's essential to use them with care. Otherwise, it can be easy to accumulate debt. Using credit cards for purchases you can pay off immediately is best. Many millennials use credit cards but continue accumulating credit card debt. Find out what they're doing wrong.

Credit cards are convenient to use, and they're accepted in most places. But they can be risky if they're not used responsibly.

If you use your credit cards carelessly, you may charge more than you can comfortably afford, which can negatively impact your finances.

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When you don't pay your entire credit card balance off each month, interest charges are added to your account -- making your bill even more expensive.

Do you pay your entire credit card balance each month? That's the best move to make.

It turns out that many millennials aren't paying their credit card bill in full.

Nearly 1 in 3 millennials carry a credit card balance

If you have credit card debt, you're unfortunately not alone.

It's a big issue for younger adults. In fact, the most common type of debt among millennials is credit card debt, according to a recent report by Real Estate Witch. It found that 29% of millennials don't pay off their monthly credit card bills. This is a costly mistake.

Of those millennials with credit card debt, the average amount owed is $5,349.

That's a lot of money!

Credit card debt is costly

Carrying a credit card balance can get expensive.

That's because credit card interest can add up quickly. As you continue to carry a balance, more debt will pile onto your account balance, and it can eventually feel impossible to pay off.

The good news is that it's possible to get out of credit card debt.

What moves should you make? If you have an outstanding card balance, do your best to pay as much of it off as soon as you can to avoid additional interest charges. Only paying the minimum monthly payment amount is a bad idea.

It's also best to avoid using your card for new purchases until you pay down your debt. Otherwise, your balance will continue to grow.

A balance transfer may help you get out of debt faster

If your debt amount feels impossible to tackle, you may want to consider opening a balance transfer credit card. If you qualify for this kind of card, you can transfer the balance of one card to your new credit card.

Many balance transfer credit cards offer 0% APR for a limited time, allowing you to avoid new interest charges during that time. Before getting a new card with a 0% interest promo, figure out if you can pay off all of your debt during the no-interest promotional period.

It's important to know that many balance transfer credit cards charge a balance transfer fee to transfer your card debt. Typically, these fees range from 3% to 5% of the amount transferred.

If you have existing credit card debt, don't ignore it. Credit card debt can negatively impact your credit.

If you're considering opening a balance transfer credit card, review our list of best balance transfer credit cards.

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