Credit Card Debt

Credit cards have certainly made life easier for many of us, in the manner we purchase goods, from a store and especially online. Namely no longer do we have to carry cash on our person, but with the benefits of having these also come some of the dangers.
Credit cards are usually issued by issuers such as your bank (it's always a good idea to obtain a card from your bank as you have a history with them, and they can grant you a lower rate of interest), whilst the credit card providers such as the likes of AMEX (American Express), VISA, and MasterCard, make their money from charging retailers for accepting the card, the issuers make their money from a variety of means.
And they revolve around endless charges in the form of over limit fees, usage fees, and late payment fees, as well as fees for sending out letter correspondence and detailed accounts.
All these charges can become a very lucrative venture for the banks, but in order to lure you and be subject to all these charges, you first have to be a customer, and these they are able to do via means of promotional offers and incentives that go along with the card such as points that can be exchanged as cash, points that can be used for money off gas mileage, frequent flier points that can be used for free flights, and very impressive introductory APR (Annual percentage Rate), such as 0% APR for 12 to 15 months.

Initially with the low APR and impressive promotional rates, the benefits of having the card far outweigh the cons associated with it, which becomes blatantly obvious if you are unable to keep up with the payment terms, and fall into debt.

One of the ways some folks are able to avoid this, is to move the balance of their card onto a new credit card offering the same if not an even better promotional period, but this can only work based on the applicant's credit rating, as each card application is noted on your credit file, and subsequent applications within a short period raises flags.

So to avoid falling into the vicious never ending cycle of credit card debt, some discipline needs to be utilised, to always clear more than the minimum amount each payment term, and to try to clear the whole balance of the card before the promotional period is up.

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