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What Happens When You Carry a Balance on Your Credit Card

Summary
The article discusses the consequences of carrying a balance on a credit card. It explains that when you don't pay off your credit card balance in full each month, you incur interest charges, which can significantly increase your overall debt. The interest rates on credit cards tend to be high, compounding the problem. Carrying a balance also affects your credit utilization ratio, which is the percentage of your available credit that you're using. A high utilization ratio can negatively impact your credit score. The article emphasizes the importance of paying off credit card balances promptly to avoid accumulating debt and to maintain a healthy credit profile.
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