Credit Card Debt

Credit card debt occurs when you borrow money from a credit card issuer to make purchases or cash withdrawals, then fail to pay the full balance by the due date. This unpaid balance accrues interest, which can grow quickly if not managed carefully. Essentially, it's a short-term loan that, if not paid off promptly, can lead to increasing debt and financial strain. Responsible use involves paying the balance in full each month or keeping outstanding amounts low to avoid high interest charges and long-term debt.