What are the risks associated with using a credit card?

When using a credit card in Maryland, there are several risks associated. The primary risk is that of overspending and running up a large amount of debt. When using a credit card there is a tendency to spend more than what is available in the bank account. With a credit card, it is easier to lose track of spending and end up in a spiral of debt. Another risk is identity theft. If a credit card is stolen, it can be quickly used to purchase items and rack up a large debt in the cardholder’s name. It can be difficult to prove that the charges were not incurred by the cardholder and many times the debt will be the responsibility of the cardholder. Finally, credit cards can be subject to high interest rates, service fees, and late fees; this can be difficult to manage and lead to even more debt. If payments are not made on time, the credit card company can report the delinquency to the credit bureaus, which could lower the credit score and make it difficult to obtain a loan in the future. Overall, it is important to be cautious when using a credit card in Maryland, and it is further important to maintain a budget to keep spending and debt to a minimum. By understanding the associated risks with using a credit card, one can take the necessary steps to avoid falling into a spiral of debt.

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What are the risks associated with using a credit card?

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