Monday, November 22, 2010

the monster named debt credit card

Credit cards are no longer becomes something strange again today but has become a necessity so you can imagine, many people who make credit card applications today. In fact, some have more than one credit card.
Businesses in the area of credit cards is a business that is growing rapidly. However, this credit card business faced a huge problem for both the card issuer and the cardholder, the problem is called credit card debt. To understand the real meaning of credit card debt, we need to understand the workflow associated with the use of credit cards.
As the name implies, the credit card is a card that you can use to obtain credit, or get a loan or debt. The credit card function in some respects similar to the books of accounts, can be used to withdraw money, the difference, with a credit card, you can withdraw money even if you do not have savings. Funds that you withdraw through the credit card become debt into your account in the bank you choose. Debt that you created through the use of credit cards must you pay each month plus interest. So each month you will get a bill from the use of your credit card and you must pay before the due date of payment. If you owe or make a payment after the due date you will incur a fine meal. However, you have the option to make payments (minimum) is also partial, in which case you are not charged a late fee but just the cost of interest on your credit card debt.
But if you do not pay your credit card debt, the unpaid debt will bear interest, so your interest expense to be increased so that your credit card debt continues to grow. You should know that credit card interest rates are usually higher than other loan types. So if you owe the debt interest will multiply and you will be piled higher. So the original credit card debt you accumulate more and more small to be big because you are subject to interest payments in arrears.


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