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A topic we have covered extensively is the topic of credit card debt. And for good reason - most Americans have tons of it from the nineteen debit and credit cards they carry in their wallet or purse. Credit cards are great tools, and it’s useful to have them, but they represent a tremendous opportunity to fall into a deep hole that could easily lead to financial ruin.

The relatively high interest rates and the relatively low minimum payments make it easy to spend more money than you have available. In this two part article, we will outline the top ten reasons why people spend more money than they should with their credit cards.

1. Poor management of their money. This one seems obvious; you absolutely must keep tabs on how much you spend each and every month. Your Visa card with a $30,000 limit is not doesn’t mean you can max it out if you only earn $20,000 per year. A little prudent thought needs to come into play. How much discretionary income do you have left after you pay your rent, car payment, grocery and utility bills? That number is the maximum you can afford to spend on your credit card. If you spend more than that, you’re going to have a deficit. And at 20% or more per year, that can add up.

2. Lowered income. The last five years have been difficult for a lot of Americans as jobs have been outsourced and companies have reorganized. Many people are working longer hours for less pay. Some jobs, like computer administration, pay a fraction of the salary they did in the late 1990’s. If you are in a situation where you are still working but earning less than before, you have to acknowledge that the amount you have to spend has been reduced, as well. A cut in salary necessarily means a cut in spending. And that is that.

3. Divorce. What used to be a single household with two paychecks may suddenly become two households with one paycheck each in time of divorce. Suddenly, all expenses are up and you may not have enough money to cover all of the immediate needs if you have to find a new apartment and put down deposits for phone, electricity and gas. With nearly half of all American marriages ending in divorce, this problem becomes a real one for many people who weren’t expecting it.

4. Failure to save. Americans are saving at the lowest rate in history. The inability to put money away for later means that more and more people are turning to their Mastercard when an emergency strikes. The wise consumer will try to put away a small amount of money from each paycheck so that a nest egg will be available in case of emergency. It’s far better to reach into your bank account when the car breaks down than it is to throw a $2000 transmission on your Discover card.

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Yes, low APR credit cards are on the rise. Many credit cards are competing for your business to give you the best and lowest rates available today. There are so many credit cards from you to choose from that they are doing all kinds of things to get your attention including lowering their interest rate and giving you no annual fees.

Why is this happening? Because there are so many credit card companies. They all want your business and this is an attractive incentive to get you to apply and own one of their credit cards. If you choose a low APR credit card over one with 19.99 percent you are sure to go with the lower APR.

The only problem is that sometime these 0% and low APR credit cards are only promotional ways to get you to apply and then later your interest rate will rise. Many credit card companies have low APR credit cards for a certain amount of time such as 3 months, 6 months and some up to one year. You will have to compare to find out which one keeps the lower APR after the promotional period to ensure you are getting the best deal around.

No matter what the reason low APR credit cards are here to stay as long as the companies are competing for your business. Just remember to compare everything they offer besides the lower interest rate. You may find that several credit card companies are now offering other wonderful incentives for you to apply with them such as reward programs.

No matter which company you choose, you will enjoy the low APR credit cards even if it is only for a limited time. You will be able to save money on your purchases because you will not have to pay any interest until the promotional period is over. Just be sure your balance is very low when the interest rate kicks in and you will be fine.