How Did I Get into Credit Card Debt? | CreditShout

How Did I Get into Credit Card Debt?

By Kevin / October 21, 2008
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You look at your credit card statement and realize that you are more in debt than you thought. This is a situation that nobody wants to face. Unfortunately, it happens time after time.

If you don’t know how you got into credit card debt there is something wrong.

You need to know what you are buying with your credit card, and of course, when you are paying this debt back. Many people forget that a credit card is not cash. In other words, the money has to be paid back, plus interest in most cases, at some point in time.

There are two ways that your credit card debt can grow out of control before you realize what is going on:

1. Spend, spend, spend.

If you get out of control and buy too much your credit card bill is going to rise sky high.

Again, it is easy to spend with your credit card, but this is not cash. Soon enough you will be asked to pay back a portion of the money that you charged.

Are you ready to do this when the time comes? If not, you should forget about using a credit card.

2. Do you carry over a balance?

If so, this means you are being assessed a finance charge.

What interest rate does your credit card have? The higher your rate the more money you are being charged each time you carry a balance from month to month.

At this point, not only are you paying back the money that you spent but you are also incurring additional debt thanks to interest charges.

Now do you see how easy it is to get into credit card debt?

This is why millions of Americans are struggling to pay back the money they have borrowed. As a general rule of thumb, do not use your credit card if you can’t afford to immediately pay the money back.

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