A credit card lets you borrow money to make purchases. The card issuer pays the merchant, and you repay the issuer. If you pay the full balance each month, you pay no interest. If you carry a balance, you pay interest, often 20 percent or more. That is the deal. It is convenient, but it can be expensive.

Credit cards have several advantages. They are safer than cash, because you can dispute fraudulent charges. They build credit history, which helps you qualify for mortgages and car loans. They offer rewards, like cash back, travel points, or airline miles. Some cards offer purchase protection, extended warranties, and rental car insurance. These benefits can be worth hundreds of dollars a year.

The risks are real. Interest rates are high. Late fees, over-limit fees, and foreign transaction fees add up. Minimum payments are designed to keep you in debt. A $5,000 balance at 22 percent interest with a 2 percent minimum payment takes over 20 years to repay and costs more than $8,000 in interest. That is the trap.

Credit card debt in the United States exceeds $1 trillion. The average balance per borrower is over $6,000. The average interest rate is over 20 percent. These numbers are not abstract. They represent real financial stress. Used responsibly, a credit card is a tool. Used carelessly, it is a burden.