Credit cards are being used by many people nowadays. Gone are the days when credit cards were meant for only the affluent. Now credit cards have gained immense popularity and these plastic cards are a common sight. But the question that rises is: Are credit cards your friends or enemy? We would say that there are undoubtedly many benefits of credit cards, but credit cards can be your irritable and fussy enemy if you fell in their trap.

Credit card companies no more target the wealthy; instead they have started targeting the middle and lower income people. Credit card companies have become smarter with time and have sorted out their target group well. Credit card companies often mislead people with tempting offers, unsolicited card offers, but behind all that is an all-time high fee. But most of the people are being misguided well by these credit card companies and falling into the trap. Due to this, credit card companies aggressively market their cards, and the customer base is increasing at a more rapid rate than ever.

The credit card companies now target the household, which on an average receives eight credit card offers in a month. The next big is the college campus where the students are being targeted. These campus students generally have no regular income and they have to pay high interest rates because of pending bills, and that is exactly what credit card companies want.

The interest rates for credit cards have shot nowadays up to 30% per year.
Many consumers and students are being encouraged to have credit cards make low minimum payments which allows the companies to charge a high interest. In 2000, the average credit card debt for a consumer in the US was $5610. It has been on rise since then, and now you can imagine the profits of these companies. Now, the credit card companies have also made it difficult for consumers to declare bankruptcy, so that they could not default the payment.

However, you cannot just blame the credit card companies. Most of the consumers often do not control their expenditures and end up having lengthy bills, and if the bills are left pending, then they have to pay a high interest rate also. So, you have to make sure that you do not fall into the trap and make credit card your enemy.