In our current cash strapped economy, an overwhelming 10% of overdue debt from credit cards is almost a regular occurrence in many households. But the dangers with mounting credit bills is the fact that they rack up escalating interest rates in a short span of time. If action is not taken quickly, then this situation can easily lead to credit cards bankruptcy within the span of a year or less.
Credit cards can either become your ally or foe, depending on how you use them. In an ideal setting, credit is meant to be used as money which allows you to go about your purchasing without the burden and risks involved in carrying wads of money around, but with the specific intention of paying them in full within a given time frame. As we face struggling times, credit cards are being used to sustain families which means spending for things which they do not have the capacity to repay. In fact, Wikipedia lists credit card debt as one of the most common reasons for bankruptcy in the United States. » Read more: Credit Card Bankruptcy
