When Texas consumers use their credit cards in a responsible manner, there may be several advantages. However, there could be many disadvantages if they are used without planning ahead for how to manage them. One late credit card payment can trigger a host of penalties, including late fees, higher interest rates and lower credit scores. The paths leading to credit card debt that is out of control are varied, but once consumers are unable to pay even the minimum amount due on their credit cards, they may find it difficult to remedy the situation.
When consumers are unable to pay the minimum amount on their credit cards for 60 days, the credit card company may impose a penalty interest rate on the full balance. With interest rates of up to 30 percent in some penalty cases, credit card holders may wonder what they need to do to get back to the normal interest rate again. Credit card companies usually review the card holder's status after a period of six months.