Stop Misusing Your Credit Card

Stop Misusing Your Credit Card

Stop Misusing Your Credit Card

Bankruptcies are increasing in all 50 states. People misusing their credit cards is probably the biggest causes of bankruptcy filings in the United States. And as people get deeper and deeper into credit card debt, the number of bankruptcies will undoubtedly rise even further.

The present credit card financial crisis is largely one of the banks and credit card companies own making. And it is one that they don't seem particularly interested in resolving. Because they are just making too much money from it. It used to be that in order to get a credit card, you had to have really good credit and an excellent payment history. Then suddenly, one day, the credit card companies decided to experiment with making their issuance rules more relaxed.

A funny thing happened when they did this. It turned out that they exceeded their wildest expectations. They expected to lose money. But they actually made money. And their profits went up a great deal. And much of these profits were due to people rolling over their balances from month to month. As time went on, the issuance rules became more and more lax until basically anyone with a pulse and a billing address could get a credit card.

As a matter of fact, it has turned out that the card holders with poorer credit turned out to be among the biggest profit makers for the company as they paid many more late payment and other penalty fees.

Today, however, with millions of people out of work and no relief on the horizon, as it turns out, the credit card bills are usually the last bills paid. And as the penalty and late payment fees add up, the balance eventually reaches a point where the best option for the person is to default on the loan or file for bankruptcy.

And making things worse for the consumer is that the interest rates on credit cards and the absurd penalty fees have increased dramatically over the years. But, it has helped the credit card companies for sure as they have profited billions of dollars.

Remember that whenever you use your credit card, you are not really using your own money. When you charge anything to your credit card or when you write a check against your credit card account, what you are really doing is taking out an unsecured loan - from the bank. Of course this benefits the banks greatly which is why they spend millions of dollars each year encouraging you to charge things on your card.

There are many valid and good ways of controlling your credit card spending. But, as a consumer, one of the biggest things that you can do tis to simply stop using it, with the exception of emergencies. And pay down your credit card debt. If you can do just these two things, even though it may be difficult, eventually you will find yourself out from under your credit card debt.

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