Credit and Debt

Stay in control of your credit cards — don’t let them control you. A credit card can be a valuable tool if you know how to use it properly. Likewise, using credit cards irresponsibly can lead to a world of hurt. If you need an example of how badly things can go, look no further than your neighbors, friends, and relatives. According to the most recent statistics, the average American household carries around $7,200 in credit card debt. Even worse, that figure tends to increase with each passing year, even as household incomes struggle to keep up with inflation. Further, a 2001 study by Drazen Prelec and Duncan Simester titled “Always Leave Home Without It” surmised that individuals using credit are often willing to spend twice