The truth about credit cards lies somewhere between these two extremes. As long as you manage them well, they’re worth having. But if you don’t completely pay off your bill at the end of the month, you’ll owe an enormous amount of interest on the remainder, usually about 18%. This is what’s known as the annual percentage rate, or APR. Credit card companies also tack on a whopping fee every time you miss a payment – usually around £12.
