Tips to pull out of the vicious cycle of credit card debt


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Tips to pull out of the vicious cycle of credit card debt

Tips to pull out of the vicious cycle of credit card debt

Updated: November 14, 2018

The content is accurate at the time of publication and is subject to change.

Credit card debt is one of the largest and most widespread forms of debt that people in this country are plagued with. It all started with the buy first and contemplate later philosophy that plastic cards revolutionized. Youngsters find it hard to comprehend just what they are getting into when they see the words credit card debt.

Credit card debt is the worst forms of debt because the interest rates are very high. Unlike a conventional bank loan that will have collateral and charge you an interest rate just marginally higher than your bank interest rate, credit cards will charge much higher rates. The best way to use a credit card is to use it for convenience rather than as a necessity. It can become very exciting when you can afford something that you really do not have the money for. If you do use your credit card for such a purpose, you will need to ensure that you have the means to pay the loan back within the grace period. If you do so, you will not have to pay the hefty interest rates that will be applied. If you pay the balance within the grace period, you will not be charged any fees at all. But the problem arises when people start making purchases and are unable to pay back the money by the end of the grace period.

The interest rates on credit cards can go up to even 20% at times. When you are faced with such massive expenses, the only comfort is to go for debt consolidation loans. These loans are traditional loans that can be of two types. They can either be secured or unsecured and the interest rates will be much lower than that of a credit card loan.

The secured loans are given to people who own a home usually or any other sort of collateral. It could be gold, art work, cars etc. the interest rates are much less than unsecured loans. Even a person with a very bad credit rating can get such a loan with ease. The only issue is that it will take a long time to secure a loan of this sort.

Unsecured loans are those that are given to people without any collateral. The interest rates will be definitely more than a traditional secured loan, but the thing is that it will be less than a credit card loan. A person with a bad credit rating will find it harder to get such a loan. But it will get approved faster as there is not much verification to be done in order to give the loan because there is no security.

The bottom line is that you need to meet with a loan consolidation expert as soon as possible in order to get your affairs sorted out failing to do so will cause your debt to spiraling out of control and making it more difficult to repair.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related Research:

Top 5 Secured Credit Cards: January 2021 – Experts’ Choice

Top 5 Secured Credit Cards: January 2021 – Experts’ Choice

Posted: October 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

Credit Card Tips For Holiday Shopping 2020

Credit Card Tips For Holiday Shopping 2020

Posted: October 15, 2020

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household… Continue reading

Top 5 Soft Pull Credit Cards: January 2021 – Experts’ Choice

Top 5 Soft Pull Credit Cards: January 2021 – Experts’ Choice

Posted: June 3, 2020

When applying for a credit card, you definitely don’t want your credit score to go down. Here, you will find the best credit cards with a soft pull from our partners. An application for such cards won’t make changes to your credit history… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!