In the 21st century credit cards aren't just a luxury anymore, they are necessary.

As you can imagine, lots of people try to get credit cards. In fact most consumers have more than one credit card. The credit card industry is growing astronomically because of it. Profits are soaring, and everyone is happy.

The problem is that many people are getting caught in escalating credit card debts. The credit cards are much easier to get and use than they are to get out of. The credit card companies make it much harder to get out of credit card debt, than they make it to get into debt.

What many consumers have found is that even the government has changed the rules against you. What used to be a viable option if credit card debt became unmanageable was to declare bankruptcy. Now, it appears that the new bankruptcy laws make it almost impossible to escape consumer debt. And that's too bad, as there is almost no escape from credit card debt when that was not the case just a few years ago.

Let's talk about how credit card debt becomes a problem.

Obviously credit cards give you credit, or money to use in exchange for future repayment. Your credit card lender will give you a credit card, and apply a limit to the amount that you can use. That limit can change over time, and not always in your best interests. Your overall credit card debt is the amount of money that is owed to the credit card company.

Where this becomes an issue is in the payment terms. It looks like free money, but when you have to pay it back, it can become quite disheartening. Depending on the terms of the credit card, a simple $1,000 credit card debt could cost you $3,000 over 10 years to pay it back.

Where trouble occurs is when payments aren't made on time. Many credit card companies will instantly increase the interest rates, going as high as 25-30%. The fees can be astronomical as well, $30-40 fees are common. The problem is these higher fees target the consumers that are least likely to be able to afford them.

However, for many consumers these problems never occur. With proper financial discipline, credit card debt does not have to become an issue. It's entirely possible to have credit cards that help rather than hurt you.