"I would use my credit card to pay for an expensive veterinary bill."
Of course, you can always put your dog or cat's veterinary expenses on a credit card. Credit cards do have some benefits, but it's easy to get into financial trouble if you rely on them too much. At last count, 61% of Americans carried a credit card balance every month, making the "charge-everything" strategy a little risky.
The Good
- An affordable option for small veterinary bills and routine care
- No waiting periods
- Immediate payment possible
- Able to dispute a charge via Fair Credit Billing Act
- If you know the money is coming, you can 'float' for 35 days
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The Bad
- It becomes a loan when the credit becomes due and you do not pay for it
- Adding monthly interest charges means you pay more for services
- Credit limits will restrict the amount you can spend on pet care
- Failure to pay on time will damage your credit score
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Real Life Example
Say you have a $6,000 bill to pay for your cat or dog's cancer treatment. You put it on a brand-spanking-new credit card with an 18.5% APR. If you paid $100 a month towards the balance, it will still take you almost 14 years to pay off your credit card debt and the total amount paid would be $16,800. That means you'd pay over $10,000 in interest.
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