(1888PressRelease)
December 07, 2006 - Credit cards that charge high rates of interest to individuals with bad credit have been accused of making debt problems worse.
To make the debt problem worse the card holder would have to be subject to the hight rate of interest charged which would mean leaving an outstanding balance on the account for more than the initial interest free period (usually about 56 days).
One of the main reasons for owning a credit card is the convenience factor. You don't need to go to a cash machine to buy goods from a store if you carry a credit card. If you need fuel for your car and can't find a cash machine your credit card can come to the rescue.
Credit cards are not the ideal solution for people wishing to borrow money on a long term basis because interest rates are often higher than loans.
People using a credit card with a high rate of interest simply need to use the card responsibly and for convenience and not use up the available credit limit and leave the balance outstanding for a long time.
Credit cards can be used for emergency cash but only on a short term basis and anyone paying back the balance within the interest free period will benefit from not having paid a penny more than was originally used.
Regular, responsible use of a credit card can also help to build or rebuild a credit rating and therefore a card with a high rate of interest provided to an individual with poor credit can help pave the way to more favourable interest rates in future and an improved credit rating.
People that are struggling with their finances already and need help or additional borrowing should consider an alternative solution to a credit card.
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