Though difficult to believe now, at one time many years ago credit cards were a luxury, owned and flashed around only by the rich and famous or businessmen on a magnanimous expense account. (Years later the same flaunting by the same beautiful people was to be made with mobile phones – strapped conspicuously to the belt -- remember?).

Be that as it may, nowadays both these accoutrements are no longer luxuries; in fact they have become necessities of daily living. And along with them - or at least with credit cards - has come a rather nasty little problem, to whit 'credit card debt'. If we are not too careful it tends to steal up on us unawares, to make itself painfully obvious on a regular monthly basis.

What is it and whence does it come? To answer this we need to know what happens behind the scenes, behind the counter of the bank or card provider. Your credit card merely represents the account you have with the bank or supplier. Whenever you use it to buy that latest laptop or pay for an expensive dinner or whatever you are actually borrowing that money from the bank and the bank will remind you of these payments, or borrowings, at the end of the month. The chickens - as chickens are wont to do - have come home to roost.

And these payments, aka borrowings, are what contributes to your credit card debt. Quite simple isn't it. Not exactly rocket science although if you let things slide it might need rocket science to get the situation back on the right track. But of course you will not let that happen will you? You may not but thousands do though. And therein lies the scourge of the ubiquitous credit card.

So, you pay the amount on your monthly statement by the due date and you pay no interest. However, if you have been a bit careless with your spending during the month, you may not be able to pay the amount so you will incur a late fee and lefty interest charges. Or you may be able to pay a little of this debt. That's better than nothing - the bank will not charge a late fee, just the interest on what has not been paid off.

So far so good. Some left still to pay, with interest accruing, at the end of the next month. When, oh dear, a bad month, a bit short again so you can only pay part of the debt again. And the next month – only part of it again...

So your credit card debit, like Topsy, grows. And grows .If you continue making partial payments (or no payments at all) the interest charges are calculated afresh on the new credit card debt. So you end up paying interest on the last month's interest too.

A nasty looking circle is forming, made even nastier by the extortionate interest rates that are charged on credit cards. This interest is far greater than the interest on most other loans that the bank may make Thus your credit card debt accumulates rapidly and soon you find that what was once a relatively small credit card debt has ballooned into a large amount which you might very well find almost impossible to pay.

Further, if you don't still control your spending habits, your credit card debt rises even faster. This is how the vicious circle of credit card debt works.

The moral is obvious isn't it? Cut your spending, leave your card at home and go back to using that old fashioned green paper stuff.