(ThyBlackMan.com) Being in debt can be a horrific experience. Oftentimes it is the leading cause of family turmoil and divorces. If we learn how to manage our finances and understand the basics of managing debt, especially credit card debt, we may be able to avoid these horrible consequences.
The following are some basic things you need to know about credit card debt:
1. You will never get out of debt fast if you keep on paying the minimum amount.
If you are trying to pay off your credit card debts quickly, then paying the 
minimum will never get you close to your goal. You must pay above the minimum to shorten the amount of time you need to pay on the debt and to pay off the debt.
2. Once you fail to pay your debt on time, the interest rate will increase.
Credit card companies increase the interest rates way higher than you can imagine. You may be shocked to know that your 4% interest will zoom to a 24% because you defaulted on a payment or paid it late. Even if you have paid on time for all the past months, if you miss one payment companies can increase your rate.
3. Do not go into depression, you will be in more financial turmoil.
One of the biggest effects of being in debt is getting depressed. When you are drowning with depression, chances are you will get sick, be under medication, therapy, etc. See what credit card debts bring to you? More money will be spent on your medical bills. Debt has the ability to pull you down even further financially and has a big impact on your health.
4. Bankruptcy should be your last resort.
There are those who want to get out of debt fast and so resort to filing for bankruptcy. Don’t you know that bankruptcy will damage your credit or FICO score even more? If you file for bankruptcy, you are telling your creditors your assets are not enough to pay off debts. And keep in mind that not all your debts will be eliminated. The impact on your financial status can be harsher than you can imagine. Bankruptcy ruins credit, makes it difficult if not impossible, to keep bank accounts and credit cards, and makes it difficult to get on with necessities of life such as buying or renting a home or car, getting insurance and even finding a job.
You may be able to work your way back to a better credit rating and a higher FICO score but it will take a long time and can cost a lot more than you think.
Head Writer; Thomas Jones, Jr.