US bank gift card

Credit cards are no more than a luxury, they are almost a necessity. So, you would conceive of a batch of people going for credit cards. In fact, a batch of people posses more than one credit cards. So, the credit card industry is growing by leapings and bounds. However, the credit card industry and credit card holders are posed with a large problem called ‘Credit Card Debt’. In order to understand what ‘credit card debt’ actually means, we need to understand the workflow associated with the usage of credit cards as such.

Credit cards, as the name suggests, are cards on which you can get credit i.e. do borrowings (your credit card debt). Your credit card is a representative of the credit account that you throw with the credit card supplier. Whatever payments you do using your credit card are actually your borrowings that lend towards your credit card debt. Your sum credit card debt is the sum amount you owe credit card supplier. You must settle down your credit card debt on a monthly basis. So, you have a monthly statement or your credit card measure which demoes your sum credit card debt. You must pay off your credit card debt by the payment owed day of the month failing which you will incur late fee and interest charges. However, you have got the option of making a partial (minimum) payment too, in which lawsuit you don’t incur late fee but just the interest charges on your credit card debt. If you don’t wage off your credit card debt in full, the interest charges too get added to it. So your credit card debt maintains on increasing, more than so because the interest rates on credit card debt are generally higher than the interest rates on other sort of loans/borrowings.

Further, the interest charges add on to your credit card debt each calendar month to constitute the new balance or the new credit card debt amount. If you go on making partial payments (or no payments) the interest charges are calculated afresh on the new credit card debt. So you stop up paying interest on the last month’s interest too. Thus your credit card debt accumulates rapidly and soon you happen that what was once a relatively small credit card debt have ballooned into a large amount which you happen almost impossible to pay. Moreover, if you don’t still command your disbursement habits, your credit card debt rises even faster. This is how the barbarous circle of credit card debt works.