Why Credit Cards Are Dangerous

Credit cards are great...

Credit cards are great.... if used responsibly! It is very easy to get into a habit of using a credit card to buy things you want, but that you cannot afford. When you get your bill, the credit card company tells you the minimum that you must pay to stay in good standing, and it is very tempting to only pay the minimum. But if you do, keep in mind that the remaining of the money that you have charged is still your responsibility. Not only that, but the company will also tack on an interest fee that you will have to pay for "borrowing" their money to pay for the things that you have purchased. Before you know it, you may be in over your head with credit card debt that is more than your annual salary!

It is very common for college students to get in over their heads with credit card debt. Credit card companies visit campuses across America each day and give away T-shirts and other promotional items simply for signing up for a credit card. Try not to fall into this trap, because that "free" item can land you in lots of debt that can take years for you to pay off!

Another group that often gets bogged down in credit card debt is single parents, or parents with a single income. Children are expensive, and it is tempting to spend more than you can afford when taking care of a child. Each dollar you spend on a credit card will ultimately be your responsibility, and it only grows over time with interest charges and fees.

To avoid credit card debt, here are a few tips. Pay off the balance each month to avoid fees and interest charges. Use the card sparingly and only buy things that you know you can afford with the money that you have today, not the money you will make next month or some other time in the future. Keep track of your charges by either visiting the credit card's online site or by treating it as if it is a checking account and writing down all of your charges. If you know when you are approaching the limits of your monthly income, plan accordingly and try not to charge more money. Good luck in avoiding these pitfalls!

Why Credit Cards Are Dangerous

By: Lance Harewood

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