The credit card companies hand you a credit line that is too good to pass up, and before you know it, you are swimming in debt trying to pay it off...make sure and read the fine print...one credit card can cause your credit score and financial future to suffer..
Yes, that's what has happened to me when I used to have a credit card. I remember one time I was overspent, then I didn't pay off my credit card bill in full the following month. Then, the bank started charging me interest on top of the fee by not be able to pay the amount in full. I ended up paying off my credit card debt in a total of 7 months, which I suffered a lot because I kept paying the $36 interest each month for 7 months, plus $25 each month for 7 months by not paying in full. I would never have a credit card again after I called the bank to cancel the credit card. I have learned my lesson well enough to actually just use cash and debit cards.
Agreed. You have to understand that credit cards are more than just a piece of plastic with an assigned spending limit. Issuers are in the business of lending you money in order to make money on you. They can charge you an interest rate that is low to begin with and then jack up the rate after a specific time has passed. And then there are the account maintenance fees and such that are tacked onto the back end. a credit card can very easily get you in over your head in a very short period of time.
Yeah most credits card companies will suck consumers in with the no annual fee and promotional rate of low as 0%. Then it goes to double digit interest. It can get to the point of paying the minimum gets you no where. Be careful with caring a large balance. It doesnt hurt to send a letter to some of your credit card companies asking for a interest rate decrease.
