Credit cards can be convenient to use, but if you are one of the millions who use credit cards and pay only the minimum balance each month, the interest you pay every month is likely much more than you realize. Many people keep buying on credit cards and simply ignore the added costs in interest and perhaps late fees.

When you closely read the bill, you will notice the amount of interest being charged. These days 20% interest on credit card debt is fairly common. Realize that when you put a purchase on a credit card that you do not pay in full every month, you have basically added a surcharge on top of the selling price. Twenty percent looks at lot different when you are paying it, than when you are saving it.

Quoting from a credit card bill or statement, here is what the writing says. “If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. This table is based on your standard minimum payment and does not include any past due and over limit amounts. For example, on a credit card with a balance of $2,238.52, this is your cost.

Read the chart and let it sink in. Paying the minimum for seven years will cost you nearly $900 more than you paid for that item.

Interest charges are accrue daily, not monthly. You may have the intention of paying off the card each month, but somehow your check doesn’t quite go far enough, so you pay the minimum.

There are credit cards that give you points which you can use for airline tickets, among other things. Can you honestly say the points never cross your mind when you are spending just a little more and putting the charges on your credit card?

It’s common for businesses to offer a sizeable discount on purchases when you open a credit card account with their company. Either opening a credit card account or closing one negatively affects your credit score. Keep that in mind when you are offered a great deal if you sign on. Even if you never use the card, it still shows up in your credit report.

The fact is, if you pay cash for the item that is on sale for 20% off, that is all you will pay.

A credit card is like any other tool; if utilized wisely, it can be useful. When not carefully monitored, the credit card and the debt you incur, will control you.

Sanders is a national-award winning columnist who writes from the family farm in southwest South Dakota. Her internet latchstring is always out at peggy@peggysanders.com. She can be reached through her website at http://www.peggysanders.com.