An inviting trap created by our modern-day financial system, credit cards can be harmful to you financial health.

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

But, purchasing things with a credit card because you don't have enough money, 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, debt consolidation experts have assisted many people to get out of the credit card trap with debt reduction programs. That alone speaks volumes about how serious the situation is. Helping people do this is not looked on favorably by the credit lenders; after all, they lose all that profitable interest. The credit companies create more enticing offers to hook consumers back in by offering 0% percent interest for some period of time.

Are they really giving you 0% interest? Only if you can pay off the debt in advance of the expiration date of the offer. What the credit company are hoping is that you will NOT have the ability to pay it off.

What happens if you can't pay? Be sure to read the fine print carefully on their 'Terms and Conditions' agreement. Many agreements have an attractive interest rate in big print; typically it is 9.99% to 12.99%. But, watch out for variable rates, meaning it is the 'lower' 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 alone can add a whopping 6 - 9% in interest 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, the credit company have the right to increase the interest rate to as much as 39%. IN ADDITION, they are allowed to add an additional $25 - 39 in fees. On a $1,000 balance, that is $52 - 66 in monthly interest and fees you are required to pay before you ever get to pay the first dollar of the price of the item you bought with the card.

What other tricks do the credit companies have in their arsenal of weapons to make sure they keep making money from you?

First is that enticing 'minimum payment' they allow you to make which is mostly interest, and keeps you paying for whatever you bought for about 20 years. In addition, they are now inviting you to get money back from retailers or earn airline miles for every dollar you charge to the card.

Who do you think is paying for those credits? Right! You do! The stores pay the credit companies for the cash they give you back, and the stores raise their prices to cover the cost.

The credit companys pay the airlines a tiny amount for each airline mile they 'give' you when you charge an item on the credit card. In an NBC TV news interview in January 2007, the president of a major airline said it only costs the airline industry $10 to fly you somewhere after you have earned 25,000 air miles to take a flight.

Who do you think really benefits if you spend enough on your credit card to earn a 'free' flight? It does not take a genius to see that trap dressed up to look like a big benefit to you.

Sandra Simmons, President of Money Management Solutions, has years of experience helping company owners and private individuals manage their money to achieve their financial golas. To learn more about the Money Management Software she created, watch the FREE 5-minute demo video on her website at www.MoneyMgmtSolutions.com