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Here's why credit cards are so insidious

Credit card debt can sneak into our lives slowly, at first. It might start with a new television that you want after you see a good deal on one at BestBuy. The next thing you know, you and your wife are planning an overseas trip, and you need to use the card to pay for a couple thousand dollars of expenses. Before you know it, you've racked up $10,000 of debt and you can't afford your monthly payments anymore.

Everyone is aware that credit card debt is not good for their finances. Nevertheless, it's important to review exactly why that is on a regular basis. Here's why credit card debt is bad in three simple bullet points:

  • Credit card debt continues to grow: The credit card debt you hold on your card likely carries a double-digit interest rate. This whopping figure -- sometimes in the 20 percent range -- will cost you a lot of money the longer you avoid paying it off.
  • The minimum payments are too low: Minimum payments are created in such a way as to make you feel like the debt isn't too much of a burden. The problem is that it will take you many years to pay off the entire balance if you only pay the minimum amount. By that time, interest really adds up. Just think how much better off you'd be if you had invested the money.
  • The items you bought are not appreciating in value: Most people use credit cards to pay for travel, medical expenses, consumer electronics, eating out, etc. These items do not appreciate in value and this means that the debt you have on your credit cards does not represent an investment for the future. In fact, it's the opposite.

Are you having a hard time getting out of debt? Bankruptcy might be the answer. Find out whether you can qualify for the Chapter 7 or Chapter 13 bankruptcy process.

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