The Credit Card Debt Trap
The compounding math of minimum payments and why 20% APR destroys wealth faster than the market builds it.
The Core Pitfall
Making only minimum payments on high-interest credit cards guarantees that you will pay multiple times the original purchase price over years.
Why It Happens
Compound interest works against you just as powerfully as it works for you in investments.
⚠️ Key Warning
Never invest in the stock market while carrying high-interest consumer debt.
How to Protect Yourself
- Recognize the trap: Understand the mechanics before you invest.
- Risk Management: Always size positions according to maximum potential loss.
- Stay Disciplined: Stick to your long-term plan and ignore market noise.