Many people run up credit card debt and increasingly have trouble making the payments. The problem often starts when you have trouble paying for things you need or want and find the easy solution is putting it on a charge card to pay later. Sure it sounds easy enough. You make smaller payments with interest over many months to pay for the larger purchase. The likelihood is that future purchases will be even harder to make because now you have credit card payments each month to make that you didn't have before. So you put new purchases on the charge card and now your payment, that being minimum payments, now rise as the interest on the borrowed money becomes larger. Credit card companies set minimum payments which covers the interest expense but little of the original amount you owe. You can keep paying interest on the money you owe for years even way after what you purchased is no longer being used. The credit card companies don't mind minimal payments because they make money on the interest you pay. Year after year you keep owing more and the payments keep rising till you have trouble paying. After paying your credit card payments for the month, you end up not having enough for the necessary purchases you need to make. This is a story that so many fall into. We all know people that have trouble. Credit counseling services have started to help people with such troubling debt.
Before you get into a troubling debt situation there are steps you can take to get out of debt. By being debt free you don't have those large interest payments each month. You may very well sleep better knowing you are debt free and able to borrow if you really needed to. That's a reason to stay debt free. Things out of your control can happen. A large expense you didn't count on, an injury that keeps you out of work or even a natural disaster can totally ruin your home and put you out of work. You can also lose your job because the company you work for has to cut their work force. No matter what it is, you may find yourself needing quick money and having credit cards with large available borrowing limits are good to have.