subject: Essential Credit Card Debt Facts To Avoid Financial Disaster [print this page] Essential Credit Card Debt Facts To Avoid Financial Disaster
In our modern world credit cards are not a luxury anymore, but it is viewed as a necessity. So, one can assume many people making use of credit cards. As a matter of fact, many people use multiple credit cards which lead to a rapid growth explosion in the credit card industry. Both the credit card providers and credit card users are currently faced with a huge challenge namely credit card debt. For us to understand the meaning and complexities of credit card debt, it is important that for us to get to grips with the processed associated with credit card usage.
Credit cards are charge cards on which you can acquire loans from your credit card provider. Any of the credit card purchases you make will add to your borrowings contributing to your credit card debt. The debt on your credit card is the entire amount that you owe to your credit card provider. It is required that you settle your credit card debt on a monthly basis hence you receive a monthly statement or your total credit card bill which illustrates the outstanding amount owed. Payments must be made on the due dates or else you will be liable for additional interest charges and late fees. You do however have the option to make a minimum payment whereby you won't incur any late fees but only the interest charges on your outstanding debt.
When paying off your credit card Interest charges will be added on if you don't make settlement in full. This will result in climbing credit card debt because the interest rates this kind of debt is usually higher than compared to other kind of debts. Furthermore, an interest charge accumulates to your debt every month which forms a new revised balance of your credit card debt settlement amount. Interest charges are revised when you make partial or no payments meaning that you will incur the interest of the previous month.
You will discover that your credit card debt skyrockets from a tiny amount to one which is nearly impossible to settle. Thus, you have no control over your spending habits then you will fall into the vicious circle of rising credit card debt. It comes as no surprise that credit cards are highly visible these days taking into account the current economic markets. Many of them appearing more often. This is one of many credit card debt facts that debtors should be aware of. In the past year, more than 60% of Americans have been 30 days in arrears in settling their credit card balances. To simplify the procedure we have included a number of debt facts. Delayed settlement and minimum settlement of balance on credit cards can lead to bankruptcy.
Many consumers experiences some form of credit card debt. Facts put out by the credit card experts and debt counsellors indicate that not only are we growing the number of cards we have but that we're escalating our outstanding debt on those cards. Those credit card debt facts are quite startling.
