Do you ever wonder why people fall into debt with credit cards? Often common sense is not used and people rely on the criteria used by banks to determine an individual’s credit line. If banks are experts in establishing credit limits then why do so many cardholders fail to pay their monthly balance in full?
The other problem is that credit card companies solicit so heavily. They send out pre-approved cards and only require minimum payments for statements. This is enticing and begins the cycle of only paying the minimum amount on the card which leads to added interest and soon a balance that is almost impossible to pay off.