| The debt situation in USA is particularly | | | | each month, a debt of $5000 will take you |
| grim. According to a study an average | | | | more than 30 years to repay and in this |
| American owes about $10,000 in debt and that | | | | process you will have paid the credit card an |
| too at a whopping 14% interest rate. What are | | | | interest of more than $5000. And if your |
| the most important things that lead a person | | | | credit card debt is $10,000 and you just pay |
| to credit card debt? In this article we | | | | the monthly minimum chances are good that you |
| analyse few of them. | | | | will never be able to repay your debt in a |
| | | | lifetime. |
| 1. Overborrowing | | | | |
| | | | 3. Multiple credit cards and repayment |
| Credit cards provide a very easy way to | | | | defaults |
| borrow money. Just a swipe and you are done. | | | | |
| This ease drives impulsive buying and without | | | | Average American household carries around 5 |
| any forethought a credit card holder goes on | | | | credit cards, which is more than their |
| and on making purchases with his credit card, | | | | regular needs. What happens is that with |
| he doesn't ever worry that this credit card | | | | multiple credit cards they falter on |
| money is a debt and has to be repaid with | | | | repayments and are slapped with a late |
| interest. | | | | payment fees, high interest rates and |
| | | | negative remarks on their credit history. |
| 2. Paying just the monthly minimum | | | | This makes getting further credit very |
| | | | costly. To make the matter worse, some people |
| Every credit card statement comes with a | | | | get new credit cards at exorbitant interest |
| minimum payment amount mentioned in it. This | | | | rates to repay their existing credit card |
| is generally a percentage of the outstanding | | | | debt, and are seriously caught in the debt |
| balance on the credit card subject to certain | | | | trap. |
| conditions. This is the minimum amount to be | | | | |
| paid to the credit card company every month. | | | | Credit card debt is growing at an alarming |
| The sad part is that people take it as the | | | | rate, the situation at the savings front is |
| only thing to be done and continue with just | | | | very grim and a crisis like the great |
| the monthly minimum. If you are just paying | | | | depression is looming on American society. |
| the monthly minimums on your credit cards | | | | |