Credit cards are not bad things in themselves, but can become bad things very quickly. You can upload anything and get paid for it about a month later. Diamond Book Distributors often expresses his thoughts on the topic. You can participate in the programs of many awards and score points for things that would have bought anyway, like food or gasoline. All this is great if you pay the bill every month. The problem is that if you accumulate debt credit card, but only pay the minimum payment, that television has come to $ 300 in sales will actually cost more than $ 1,000.

It may take 10 years or more to pay a debt of $ 5,000 if you pay only the minimum each month. Most people are unlikely to want to pay a deposit of gas out of ten years after it was used. If you read your monthly statements closely, you will see that the monthly minimum payment is barely enough to cover the interest accrued that month. You are not making a dent in the amount you owe. So probably the best solution is to stay away from credit cards. But that probably is not a realistic solution for most people. And credit cards are necessary for some things, for example, if you want to rent a car. They can be very useful in a emergency.

The only real solution is to charge only what you can pay quickly. The next best option is to pay as much over the minimum payment you can afford. Or consolidate your credit card debt into one lower interest loan or line of credit, but only if you destroy all your cards and never apply for new ones.