As you properly know there are more credit cards in circulation in the U.S. than there are people. This is more than likely to grow, once we're out of the current recession.
The recent trouble in the credit markets clearly illustrates how much we all depend on credit to run our finances on a daily basis. For the individual the credit card is one of the most common form of credit and it is a convenience most people would not like to do without.
To many people the trouble with credit cards is that it allows them to spend more money than they can afford and some get deeply in debt. Having a credit card does require discipline and the exercise of common sense.
Always remember that in addition to the money you spend on your credit card you will also be charge fees and interest. How much this is depend on the credit card you have and your payment schedule. If you carry over a balance from month to month you can end up paying over 25% annual interest on some credit cards. Your yearly fees will likely be hundreds of dollars.
- an expensive convenience...
However, there are things you can do and it is kind of obvious; use your credit card as little as possible and pay the total balance off every month.
Most of all it is important that you get a card which charges reasonable fees and interests.
You can see some of the things to avoid in the following video.
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