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Credit Cards, issued by many retailers and financial organizations, are a useful tool if used correctly. Credit Card rates vary tremendously from 0% APR on transfers to greater than 25% APR, with the rate depending on an individual’s credit rating. Benefits and fees also vary between card issuers. Millions of people have credit cards, and, in the United States, many of those receive their first credit cards early during their adulthood — resulting in many then needing some form of debt-management.

With this in mind, it is appropriate to learn how to use them wisely. When used wisely, a credit card is nothing more than a small, interest-free loan, especially if the debt is paid off quickly. Many people run up debt in their cards, especially during times of recession or other economic turmoil. The average American, according to the US Federal Reserve (G.19 release, Nov 2008), the average American owes $3184 in credit card debt or $8299 per household. With this debt, it is important to pay off your credit card debt to aid the economy and leave more spendable income for the average household.