What is a credit card?

What is a credit card? Basically it is a loan in the generalist sense of the word. You don’t have the cash on hand to pay for whatever you are using your credit card for so instead you use the card. The company that owns the card lets you borrow money from them with the full intent of getting their money back, with interest. They don’t just give money away because sadly the world we live in isn’t all that nice when it comes to things like that. Normally the interest rate on credit card can vary greatly anywhere from 0% to the high 20s. Sadly credit card reform in the states isn’t as great as it should be so credit card companies are getting away with charging incredibly high fees as well as rates.

The borrower is normally stuck using these horrible cards because they depend on them to survive. With the way that the economy is today it would seem that this is becoming more the norm for struggling families. It is a very dangerous situation to be in because the more debt we collect as a nation the more problems we inherit that are associated with the acquisition of debt.