There are chances that you might have a credit card, and on daily basis you are using it for all types of transactions. Nowadays, merchants are accepting credit cards more then a dollar for purchases and for smaller transactions they don’t even ask you to sign the receipt on.

Interest Payment Each Month

However each month you must have to pay interest charges no matter how much you have used your credit card. If there is a balance each month on your credit card then the credit card company will charge a finance charges from you, these finance charges can range from 5-25% and if you have a poor credit then these charges could be even higher what is mentioned above.

Month after month many consumers continue to pay finance charges simultaneously they also pay the minimum payment on their credit cards, doing this they paralyze themselves in the credit card trap.