What Is Credit Card Abuse?

Credit card abuse is when people use credit cards for purchases and expenditures, excessively and irresponsibly. In many cases credit cards have become a way of life. People use them for gas, groceries and many other consumer goods without thinking about the consequences.


According to Money-zine.com, people in the United States charged roughly $1,950 billion dollars in credit card debt in 2006, which equates to $11,300 in purchases for every consumer with a credit card. The projections for 2010 are even higher.


As of January 2008, the percentage of credit card accounts that were 30 days past due or more was 4.18 percent in the fourth quarter of 2007, according to the American Bankers Associated.


When people abuse their credit cards they end up seeking help from consumer credit counseling or debt management companies, or they may need to file for bankruptcy protection.


According to Money-zine.com, the number of bankruptcies in 2007, during the second quarter, was 200,732, which represents an increase of 11.6 percent above the first quarter filings of 2007.


To avoid being overtaken with credit card debt, consumers would do well to use credit cards as a matter of convenience. It helps them avoid carrying cash. When the credit card statement arrives, the entire balance should be paid in full.