When it comes to debt, people give themselves credit — lots and lots of credit. At the end of 2007, Americans owed $941.1 billion in credit-card debt, according to the website cardtrak.com.
Successfully managing credit is crucial, but there are some arcane credit-card rules that may affect your balance, your interest rate, and even your credit score.
Use and lose: Your credit score is based in part on how much credit-card debt you have in relation to your credit limit. Experts recommend using no more than 10 percent of your available credit. More than 50 percent could actually reduce your credit score.
Bare minimum: About 60 percent of Americans carry a balance on their cards from month to month, including some who pay only the minimum required payment. With a $2,000 balance and a 14 percent interest rate, paying only the minimum payment each month would take over 14 years to pay off the debt and the interest.
Universal default: If your credit-card agreement has a universal default clause, you could be hit with a higher interest rate if you are 30 days late paying any of your credit cards or other payments, such as your mortgage, car loan, and even your phone bill.