Credit Card Debt

Filed Under » ,
Dictionary Says

Definition of 'Credit Card Debt'

A type of unsecured liability which is incurred through a short-term revolving loan facility. While, technically, all purchases made by credit card create a debt to the user, these debts typically do not incur interest until the grace period has expired. Thus, credit card users who pay off their balance each month are generally not considered to have credit card debt. Rather, the term applies to users who continue to carry a balance on their credit cards after the grace period has expired and the debt begins to bear interest.
Investopedia Says

Investopedia explains 'Credit Card Debt'

Although credit card debt is widespread, its high interest rates make it one of the worst types of debt. Credit card users who carry a balance do not have a grace period, so interest is charged on new purchases immediately. Credit cards often encourage users to pay only a small minimum payment, promoting the use of the card as a longer-term loan. However, many financial experts advise paying off all credit card debt as an early step to improving one's financial situation.

Articles Of Interest

  1.

    Negotiating A Debt Settlement

    If you're being harassed by a debt-collection agency, you can take charge. Find out how.

  2. Debt Consolidation Made Easy

    These five steps can help get you out of debt faster and easier than you'd ever imagined.

  3. Take Control Of Your Credit Cards

    The plastic in your wallet doesn't have to hurt your finances. Learn how to manage it responsibly.

  4. A Lifeline For Those Drowning In Debt

    Don't wait to be saved, find out where the lifesaving devices are and hang on tight!

  5. Credit, Debit And Charge: Sizing Up The Cards In Your Wallet

    Not all plastic is equal! Learn the difference between the three kinds, and how each can affect your finances.

  6. How Credit Cards Affect Your Credit Rating

    The average American household has four cards, but does that mean more is better?

  7. Avoid The Generation Debt Trap

    There is a worldwide generation of young, educated individuals mired in unmanageable debt. Find out why.

  8. Are You Living Too Close To The Edge?

    If a missed paycheck will make your finances cave in, you must learn how to make proper supports.

  9. Understanding Credit Card Interest

    Paying these rates can impact your disposable income and your investment returns.

  10. How Much Debt Can You Handle?

    Follow these five steps to manage debt without cutting up your credit cards.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  2. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  3. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  4. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  5. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.

  6. Chartalism

    A non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=a281e7a200349b8ecdf45d71d5d2073f