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