There's A 2-Tiered Credit Card System In America

How can you protect yourself?

The two-tiered credit card system is clearly unfair—but there are small, practical steps consumers can take to ease their credit card debt and regain financial control. To protect themselves from falling into credit card debt, consumers should aim to pay off their balances in full each month to avoid costly interest charges. It’s important to understand your card’s interest rate (APR) and avoid relying on minimum payments, which can lead to long-term debt.

Tracking spending through budgeting tools and building an emergency fund can also reduce the need to use credit for unexpected expenses. While rewards like cash back and travel points can be tempting, they shouldn’t justify unnecessary purchases—especially if you’re carrying a balance. Setting up automatic payments and account alerts can help prevent missed due dates, while keeping your credit utilization low (ideally under 30%) supports both your credit score and financial health. 

For those with existing debt, a 0% balance transfer card—a credit card that allows you to transfer existing credit card balances to a card with no interest charges for a limited period—could be a good tool to help you reduce debt. But it’s important to note that the balance must be paid off before the promotional period ends.

Ultimately, using credit mindfully and knowing when to pause card usage can help consumers stay in control and avoid the debt trap.

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