Beware of getting caught in the credit card traps being created by our financial system.

IF you have the money to pay off the credit card when the statement arrives, using the card is not bad.

However, buying with a credit card when you don't have enough cash, means you are committing your future income to the credit company under the threat of a bad credit rating. That is economic slavery.

Over the past few years, financial experts have assisted a lot of people to escape from the credit card trap with debt relief programs. That says a lot about how bad the situation is. Assisting people to do this is frowned upon by the credit lenders; they lose all that profitable interest. The credit companies create more enticing offers to hook more people back in with offers like 0% interest for extended periods of time.

Are you really getting 0% interest? You are IF you can pay off the whole amount before the time frame is up. What they are hoping is that you will NOT have the ability to pay it off.

If you can't pay, what happens then? Carefully read the fine print details on their 'Terms and Conditions' agreement. Most agreements have an attractive interest rate in large type; 9.99% to 12.99% is fairly standard. But, many rates are variable, because that means it is the 'attractive' rate PLUS the 'prime rate.' The banks charge the prime rate to the credit company to lend them the money, and that gets passed on to you. This can add a whopping 6 - 9% on top of that seemlingly low interest rate.

Read further and you'll see the rest of the trap. If you pay late or miss a payment, they have the right to jack up the interest rate to as much as 39%. PLUS, they are allowed to add an additional $25 - 39 late fee. On a $1,000 balance, that equals $52 - 66 a month in interest and fees you must pay before you pay even one dollar on the price of the item you bought with the card.

What else do the credit card companies have in their arsenal of weapons to make sure they continue to make interest money from you?

First is that enticing 'minimum payment' they allow you to make which is mostly interest, and hooks you into a payment plan that will take you 20 years to pay for what you bought. Second, they are now inviting you to get cash back from stores or earn airline miles for each dollar you spend.

Who do you think is paying for those credits? You do! The stores pay the credit companies for the cash they give you back, and then raise the price you pay.

Credit card companies pay a tiny amount up front for each airline mile that they 'give' you for every $1 you spend. On January 1, 2007 in an NBC TV news interview, the president of a major airline said that it costs the airline company $10 to fly you somewhere when you have earned 25,000 air miles to take a flight.

Who actually benefits financially if you charge up your credit cards to earn a 'free' flight? It should be obvious that trap is disguised as a huge benefit to you.

Sandra Simmons, President of Money Management Solutions, has years of experience helping business owners and individuals manage their income to achieve their financial golas. To find out about the Money Management Software she created, visit her website and watch the FREE 5-minute demo video at www.MoneyMgmtSolutions.com