Many people consider having a credit card as being a necessity and often have more than one card.
There is, however, the growing problem of credit card debt and the more cards you have the easier it is to get into debt.
The use of credit cards, as the name implies, enables you to get credit.
What many people don't think of, this is in fact a loan and must be repaid.
Using cards is so easy and made simple by the stores where you make your purchases.
It is convenient and means not having to carry a lot of cash which can be stolen.
It is also used as a form of identification, adding to its perception of convenience.
It is simple to buy online with the use of a credit card and is one of the best methods of payment.
It is no wonder that we feel we cannot do without our cards.
Purchasing using cards makes you feel as though you have endless cash available and this is the danger that leads you into debt.
Each time you make a purchase you are adding to your borrowings.
Unless you repay this amount each month to clear all of your borrowed funds you will pay interest.
And the interest rates are among the highest for any sort of loan.
Not paying on time will also incur late penalty fees which further add to your debit balance.
While you may feel as though you are paying your loan by paying the minimum required you may not realise exactly how the interest is adding to your balance, helping you to get further into debt.
In fact the minimum payment is likely to only cover the interest and very little of the principle sum that you owe.
We have all heard of the magic of compound interest where interest is added to investments and interest is then calculated on the new total.
While this is wonderful for investment it is deadly for getting out of debt.
It is working against you, rather than for you and your debt increases.
If you do not take control and you continue to spend without thought, your debt will continue to rise.
Before you know it you will be up to the limit on your credit card and have nowhere to go.
It is at this stage that you will realise you are in trouble and have to do something about your credit card debt situation.
There is, however, the growing problem of credit card debt and the more cards you have the easier it is to get into debt.
The use of credit cards, as the name implies, enables you to get credit.
What many people don't think of, this is in fact a loan and must be repaid.
Using cards is so easy and made simple by the stores where you make your purchases.
It is convenient and means not having to carry a lot of cash which can be stolen.
It is also used as a form of identification, adding to its perception of convenience.
It is simple to buy online with the use of a credit card and is one of the best methods of payment.
It is no wonder that we feel we cannot do without our cards.
Purchasing using cards makes you feel as though you have endless cash available and this is the danger that leads you into debt.
Each time you make a purchase you are adding to your borrowings.
Unless you repay this amount each month to clear all of your borrowed funds you will pay interest.
And the interest rates are among the highest for any sort of loan.
Not paying on time will also incur late penalty fees which further add to your debit balance.
While you may feel as though you are paying your loan by paying the minimum required you may not realise exactly how the interest is adding to your balance, helping you to get further into debt.
In fact the minimum payment is likely to only cover the interest and very little of the principle sum that you owe.
We have all heard of the magic of compound interest where interest is added to investments and interest is then calculated on the new total.
While this is wonderful for investment it is deadly for getting out of debt.
It is working against you, rather than for you and your debt increases.
If you do not take control and you continue to spend without thought, your debt will continue to rise.
Before you know it you will be up to the limit on your credit card and have nowhere to go.
It is at this stage that you will realise you are in trouble and have to do something about your credit card debt situation.