Credit Card Debt Facts

There are so many consumers who are not given an opportunity to learn about credit card debt, spending, budgeting and other consumer and financial matters. Many times people learn financial lessons “the hard way”, through their own errors or difficult experiences.

The most basic credit card debt facts are not all negative, but is a bit of critical information that everyone who uses credit cards regularly should know:

• Most credit card interest rates vary
• Every credit card charges late fees and penalties
• Too many credit cards and accounts can negatively impact credit
• Closing a credit card account can also negatively impact a credit score
• There are agencies to assist with credit card debt
• Credit card debt can be eliminated without bankruptcy or long term credit damage
• Properly using credit card and credit accounts can improve credit scores and ratings

Most credit card interest rates can vary. If a consumer reads the full terms of most credit contracts they will find that the bank or lender will allow adjustments to interest rates for a number of reasons. Some introductory rates, balance transfer rates and special offers have an expiration date or limited time span. Some companies adjust a rate to the highest possible after a late payment, or several missed payments.

Late fees are credit card debt facts of life. If you are late by even one day, your credit card company can add a significant, and often hefty, late fee to your account. Some companies will even increase the overall interest rate for a late payment. Many companies allow monthly payments to be scheduled automatically through their web sites, and some banks do this as well. If you are regularly late on paying accounts it is a great idea to pre-arrange payments in this way to avoid penalties and fees.

If you have many accounts with balances on them it is a good idea to find a reasonable consolidation or balance transfer opportunity and roll them into this single payment. Too many balances will create a negative impact on a consumer credit score. Closing accounts to address this issue is not a good idea if credit rating is a concern because financial agencies look at closed accounts as a negative issue.

If a consumer finds that they cannot pay minimum amounts or if they anticipate falling behind on their credit card payments they should seek help. There are many agencies aware of the current credit card debt facts, and will work with consumers to help them improve their financial situation. Most will be able to establish repayment terms and protect their client’s credit.

Basic credit card debt facts and figures offer proof that if a consumer properly uses credit and makes their required payments on outstanding balances, they will establish themselves as a trustworthy consumer and receive a higher credit score for their efforts.

The accepted credit card debt facts are that wise choices in consumer spending can positively effect credit rating, and there are numerous agencies and groups that work every day to help consumers stay on solid financial ground, or to re-establish their credit if they have had some difficulties.