The Credit Card Trap - Compare Credit Card Offers

By [http://ezinearticles.com/?expert=David_M_Siegel]David M Siegel

The offers come in the mail by the dozens.  Many credit card companies continue to send offers to people who are already card carrying members.  The temptation can be too much when one is in need of an infusion of credit or capital.  What people fail to realize is that there is a point of no return.  At some point, the cost of debt servicing per month exceeds the amount available per month.

Here is a perfect example.  Let's say that our card holder is named Steve.  Steve just cannot seem to get his head above water.  He may be having ongoing debt issues due to medical,  job, auto or loan obligations.  In an effort to get on top of his finances, he accepts a credit card offer for additional credit.  However, he doesn't solve the underlying problem that has lead him into debt.  Maybe he still doesn't have medical insurance or maybe his employment situation is less than steady.  In any event, he simply will continue to incur monthly debt above and beyond his income.

This is where the credit card trap begins.  The credit card offer will likely come with some sort of incentive for either signing up or from making a balance transfer.  The introductory rate will be enticing low and hard to refuse.  Eventually though, the rate of interest will rise and the minimum payment will increase.  In our example, Steve is then faced with a new problem.  He was able to survive for a while by utilizing the credit from the latest offer; however, that credit card has no more credit available.  This is where the entire cycle begins again.

Steve will more than likely receive another offer from another credit card issuer offering a similar introductory deal.  What winds up happening is that Steve exhausts the benefits of that latest credit card until there is no more available credit.  This can continue to occur until his outstanding debt obligations are too great for even the most risky of credit card issues to approve him for credit.  It is at this point where the late fees, over-limit fees, and high interest bring Steve to the point of no return.

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Article Source: [http://EzineArticles.com/?The-Credit-Card-Trap---Compare-Credit-Card-Offers&id=1242301] The Credit Card Trap - Compare Credit Card Offers