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

Using a credit card is not bad IF you have the money to pay off the balance each month

But, buying with a credit card because you don't actually have the money, means you are committing your future income to the credit company under the threat of a bad credit rating. That is economic slavery.

During the past several years, debt consolidation experts have assisted a lot of people to escape from the credit card trap with debt reduction programs. That says a lot about how bad the situation is. Helping people do this is frowned upon by the credit lenders; they lose all that profitable interest. They create more enticing offers to hook consumers back into the trap by offering 0% percent interest for some period of time.

Are you really getting 0% interest? You are IF you can pay off the whole amount in advance of the expiration date of the offer. What they are hoping is that you will NOT have the ability to pay it off.

If you can't pay, what happens then? Be sure to read the fine print carefully on their 'Terms and Conditions' service agreement. Many agreements have an attractive interest rate in big print; typically it is 9.99% to 12.99%. But, many rates are variable, which really means it is the 'attractive' rate PLUS the 'prime rate.' The prime rate is what the banks are charging the credit company which then gets charged to you. This can add a whopping 6 - 9% in interest on top of that attractive interest rate.

Read further and you'll see the rest of the trap. If you pay late or miss a payment, they have the right to jack up the interest rate to well over 30%. PLUS, they are allowed to add an additional $25 - 39 late fee. On a $1,000 balance, that equals $52 - 66 a month in interest and fees you are required to pay before you ever get to pay the first dollar of the price of the item you charged.

What other tricks do the credit companies have in their tool kit to ensure they continue to make interest money from you?

First is that enticing 'minimum payment' they allow you to make which is mostly interest, and hooks you into a payment plan that will take you 20 years to pay for what you bought. Second, the credit companys are now inviting you to get money back from stores or earn airline miles for every dollar you spend.

Who pays for that? 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 stated that it costs the airline company $10 to fly you somewhere when you have earned 25,000 air miles to take a flight.

Who actually benefits financially if you charge up your credit cards 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 individuals manage their money to achieve financial freedom. To find out about the Money Management Software she created, visit her website and watch the FREE 5-minute demo video at www.MoneyMgmtSolutions.com