Simply stated credit card debt is purchasing credit debt. Everyone knows about the big three, Visa, MasterCard, and American Express but they are not the only ones that can affect your credit score. A department store card is also credit card debt as are mail order purchasing credit lines like Fingerhut or Blair’s. Even brand name lines of credit such as Dell or Apple are credit card debt.

Officially, credit card debt is unsecured consumer credit debt that generates some type of identification card. That statement is misleading, however, since Brand-specific lines of credit do not usually issue identification cards, nor do mail order purchasing companies.

Signature loans are not credit card debt. A signature loan advances a set sum of money all at once and you have to repay the entire amount of the loan plus any accrued interest before you can apply for another loan. In effect, they are secured against your signature.

Bank or loan company issued lines of credit also are not credit card debt. They are secured against either real property or liquid assets.

Credit cards can be a valuable resource when used properly. With a credit card, you can purchase necessities or pay for emergency expenses without having to scrape the cash together. They are also a trap since it becomes very easy to justify an impulse or extravagant purchase as a necessity. This is where credit card debt begins to overwhelm the consumer.

Credit card debt accounts for more than fifty percent of the average American consumer debt today. With their high interest rates creating high finance charges, a credit card holder can easily find themselves paying over limit fees on just a few purchases. Most card companies also charge a high late payment fee as well. Vigilance is a consumer’s best defense against overwhelming credit card debt.