Despite making an average of $1,000 in payments every year, an Ohio man turned $3,200 in credit card debt into $10,700 in debt! Lima, Ohio's Wesley Wannemacher (according to Marcy Gordon, AP Business Writer) used a Chase card for $3,200 in purchases in 2001 only to see that debt level balloon 334% thanks to $4,900 in interest charges, 47 over-limit fees for $1,500, and $1,100 in late fees.
This is a trap many consumers are falling into. Whether it's from deceptive rates, misunderstood terms, financial illiteracy, or simple bait-and-swith tactics, many Americans are falling deeper and deeper in debt. Budgeting is a big part of the solution, but taking the time to fully understand your revolving credit agreement will go a long way in reversing this horrible trend. Take advantage of your credit union's expertise - let them help you compare and contrast credit card offers. Some are great deals, for sure...others can leave you with a mountain of debt (just ask Mr. Wannemacher).