Credit Card Debt Essay

The use of credit cards has gone viral with everyone making it a lifestyle. This explains why we have alerts telling you to use your credit card in shopping malls and recreational parks.

If you are an outgoing person, you must have noted that there are places where people strictly use credit cards. Credit card debt is money owed to a company for services or goods delivered.

If one doesn’t pay the company the money owed, the debt accumulates, attracting penalties or interest. In such a case, the credit card owner will be charged a penalty due to late payment.

Essay on Credit Card Debt

In case they still fail to pay, the credit card company will refer them to credit recovery agencies. Failing to pay the credit card debt on time is termed as defaulting.

credit card debt essay

What Makes People Fall Into Credit Card Debts?

The majority of people who have been caught up in the credit card debt circles have been using it to cater to their daily needs. This could be groceries or the cost of transport to their workplaces.

If you love using credit cards, then you will need to exercise financial discipline and pay your credit card debt on time.

Having outstanding credit card debts for long might make you miss a job opportunity. This is intense because most companies are checking on applicant’s credit cards.

If yours is in debt, then you might lose a lifetime opportunity. Additionally, the credit cards offer and rewards are another trap that will entice you to spend on your credit card.

You need to understand that you can’t compare those rewards with the interest rates you will have to pay once you fall into credit card debts. The debt will be way higher than the offers you are being given.

The ability to get many credit cards is another trap of these debts. You have a high chance of misusing money if you have more credit cards. This is why you should only have the cards you can manage. There is nothing good about credit card debts, and one should strive to avoid them.

Why Do Credit Cards Make It Easy To Get Into Debt?

Credit cards are tempting, and it is easy for them to get you into debt. Why do credit cards make it easy to get into debt? This is a common question that one might ask.

One of the reasons people fall into the credit card trap is that it easily accesses your money and can make purchases anytime and anywhere. This is different from using cash because with the cash, you spend what you earn.

Lack of extra money for emergencies is another reason why credit cards make it easy to get into debt. People rarely have emergency funds, and when a child falls sick, credit cards remain their only option. Having extra funds for emergencies is a great way of avoiding viral credit card debts.

Reasons Why You Should Get Out Of Credit Card Debts

There are many reasons which bring out the good side of being free from credit card debts. Getting out of these debts helps you have control over your finances.

You can save the money meant for paying the defaulters’ interest. Besides, you will get some peace of mind since no debt collecting agencies will be on your case.

Advantages of Credit Cards

  • Using a credit card is safer than carrying money.
  • One can enjoy interest-free days.
  • Credit cards go with any currency.
  • They are helpful in times of crisis.

Disadvantages of Credit Cards

  • Paying high-interest rates
  • The temptation to overspend is high, and one can easily get carried away.
  • A credit card has high exposure to fraud. Also, the process of reclaiming your money back is hectic.
  • Overspending on credit cards results in debts, which might damage your credit record.


Credit cards are a great way of managing your finances. This tool of payment makes our access to goods and services easy and fast. However, it has high risks and can be expensive at times.

This is more so if you are poor in spending. Credit card debts have taken a toll on many people to the extent of destroying their financial credit. There is no better way to avoid this menace than to exercise financial discipline.

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