Debt. The word comes from the French dette and ultimately Latin debere (to owe), from de habere (to have). The letter b in the word debt was reintroduced in the 17th century, possibly by Samuel Johnson in his Dictionary of 1755— several other words that had existed without a b had them reinserted at around that time. Debt is that which is owed; usually referencing assets owed, but the term can also cover moral obligations and other interactions not requiring money. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned. Some companies and corporations use debt as a part of their overall corporate finance strategy. A debt is created when a creditor agrees to lend a sum of assets to a debtor. In modern society, debt is usually granted with expected repayment; in most cases, plus interest. (http://en.wikipedia.org/wiki/Debt)
Credit Card is a small card that authorizes the person named on it to charge goods or services to his or her account. It differs from a debit card, with which money is automatically deducted from the bank account of the cardholder to pay for the goods or services. Credit-card use originated in the U.S. in the 1920s; early credit cards were issued by various firms (e.g., oil companies and hotel chains) for use at their outlets only. The first universal credit card, accepted by a variety of establishments, was issued by Diners' Club in 1950. Charge cards such as American Express require cardholders to pay for all purchases at the end of the billing period (usually monthly). Bank cards such as MasterCard and Visa allow customers to pay only a portion of their bill; interest accrues on the unpaid balance. Credit-card companies get revenue from annual fees and interest paid by cardholders and from fees paid by participating merchants.(http://www.answers.com/topic/charge-card)
With the advent of credit cards, most often than not, instead of being relieved from our financial burdens, this plastic had been the source of many financial woes due to the ready credit it provides. The clothes, the shoes, the gadget you love are just a swipe away, even if you have no cash. For some, they are constrained in using the credit card for legitimate needs like grocery and milk for kids. For some, the earning is simply not enough because of early marriage, or only one spouse is working, or in instances where although both spouses are working, the salary, however, is very low. There are numerous reasons, why people convince themselves that they need to have a credit card. Then come payment time, at first, you get to keep up with the payment. Eventually, it is preceded by the vicious cycle of accumulation of debts until you find yourself barely making the minimum and before you knew it, it has gotten out hand and collection letters have arrived. You would want to pay, but you do not know where to get the fund.
