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I was driving the car with my wife on the highway when the car turned the radio on the credit card commercial. The song is a re-composition of an old song and cool enough to listen. There is mentioned, if you frequently use a card, you could have chosen his own gift.

Interestingly, a few days later, I received a letter from a mother. She says she has eight credit cards that are all active! The number of bills were all already almost reached the limit. Well, she almost always run out to pay their credit card every month.

Interesting is not it? On the one hand, there are banks that absorbed advertise and encourage people to actively use credit cards, but on the other hand there are people (and I'm sure not just one person) stuck with a collection issue credit cards.

So, who's wrong here? Bank issuing a card or the card user? This article will discuss the issues of what can be done by the credit card holder if not careful.

First of all, we must realize that credit cards were simply a means of payment. That is, the card functions is the same as the cash you use to pay a transaction. The difference is, the card is a "temporary replacement" of cash. If you buy goods worth USD75 and pay by credit card, the bank issuing card will charge USD75 at the end of the month. Thus, the payment is not made at the beginning when the goods purchased, but when the bill comes later.

Why have this hold a credit card? The main advantage is only one: You do not need to carry lots of cash every time you make purchases of goods and services. Imagine if you have to carry around cash USD500 to USD1,000 in your wallet, while you have to frequently travel by city bus.

Back to the bill earlier. What if you do not pay off at once? There is charges you should pay. It is about 2 to 3.5 percent of the amount of the unpaid bills.

If you do not want to pay off your bills, credit cards usually provide facilities in the form of a minimum payment provisions. The amount varies, approximately 50-10 percent of the amount of your bill that month.

Problems usually begin to appear when you start to get used to are reluctant to settle the bill in full. You only pay a minimum bill each month. While the frequency and value of credit card usage is not reduced but actually increased.

Example, the total usage of credit cards in June was USD1 million. When the bill came, only paid USD150,000. In July, the total usage is USD1.5 million. When the bill arrived, the payoff of only USD250,000. In August, total usage is USD2 million. When the bill arrived, the payoff of only USD350,000. So it went.

Well, because every amount not repaid will be charged interest of about 2 - 3.5 percent per month, then at a certain moment, the number of bills will be very high so that you can no longer afford to pay it off at once. When the number of credit cards you have are many, then the more difficult you to off the hook of bills.

So who is wrong? Is the credit card issuing bank? No, The user is. The problem often lies in the user's who own card. Many people consider credit card as a means of putting additional money. So, in their minds, have a credit card with a limit of USD 4,000, for example, is like an additional income of USD4,000.

Is that correct? No. The card is just a tool to lieu cash. Each time you use the card, meaning there is less money to pay the price of goods or services you buy.

Indeed, there are some credit card that adds value to the card, such as various insurance, electrical goods, up to a free holiday abroad. Good, but still you should be aware, a credit card function just one: a temporary substitute for cash.

For those of you who currently stuck with a credit card problem, do not blame your card issuing bank. They were not anything wrong. Do not blame yourself too, because let's just say yesterday that you did not know much about the strategy of using a credit card. What should you do is one: slowly pay off your bills. Contact your card issuing bank because they can provide solutions that best efforts for your redemption.

Mostly, the problem of credit card use often arise because of lack of proper systems of financial management in the family.