Because of this almost everyone tries to get a credit card. Many people have more than one, and sometimes as many as 10-20. The credit card industry has blossomed over the last few years and their profits have been skyrocketing.

Credit cards are great, until you realize that it is actual a real debt that you're incurring. It's so much easier to get started with credit cards, and build up large credit card debts, than it is to get out of that debt. After all, the credit card companies succeed when they get to collect higher and higher interest and fees, than if you pay them off.

What many consumers have found is that even the government has changed the rules against you. What used to be a viable option if credit card debt became unmanageable was to declare bankruptcy. Now, it appears that the new bankruptcy laws make it almost impossible to escape consumer debt. And that's too bad, as there is almost no escape from credit card debt when that was not the case just a few years ago.

But not all credit card debt is a problem, let's see what happens when it is a problem.

Credit cards by their nature offer the consumer the ability to use the credit card for purchases rather than cash. The credit card company will determine a certain amount that the borrower can use, this is the credit limit. Depending on how much you use the card, and how quickly you pay that amount back determines your credit card debt.

Where this becomes an issue is in the payment terms. It looks like free money, but when you have to pay it back, it can become quite disheartening. Depending on the terms of the credit card, a simple $1,000 credit card debt could cost you $3,000 over 10 years to pay it back.

Another issue is if you ever miss a payment, many credit card companies have very harsh penalties. Your interest rate could go as high as 30%. You could be hit with late fees, over the limit fees, etc. The situation can quickly spiral out of control.

Most consumers won't run into these problems with credit card debts. As long as you manage your credit card debt properly, there is no reason to think that your credit cards should affect you negatively in any way.