The major drawback to using credit cards is that too many people overextend and find themselves in the black hole of high interest credit card debt. Credit card debt is easy to get into and can be very difficult to get out of.
If you don't pay your bill in full or you pay only the minimum amount each month, you will get charged interest on the amount you owe.
Credit cards are a very expensive way of borrowing, and other loans such as a personal loan may be better.
If you are late with your repayments you get charged and this could affect your credit rating.
It may take a very long time to pay off your debt, even if you stop buying things on the card, because you'll be paying interest each month on the outstanding balance.
Low Introductory rates and fees can seem like a good deal at the time, but they can increase unexpectedly and lead you into a false sense of security.
If you travel overseas frequently, or purchase goods or services in foreign currency, check what you are being charged for currency transactions as some credit card companies charge a high exchange rate or fee.
Some credit cards will give you free insurance, but many policies are inadequate or virtually worthless.
Many card issuers will try to get you to take out payment protection insurance - they make a lot of money from your premiums and many are inadequate.
Debt Consolidation Explained contains general information only. We strongly advise you to seek qualified professional advice before taking any action.