<p>The basic cardinal rule: If you borrow something, make sure you return it before the due date. </p>
<p>If you use a credit card you are borrowing, you may not think so but you did not pay cash at the time you bought the item. The credit card company instead paid it for you and billed you later and you owe them. If you are late in paying back the credit card, the student loan, the personal loan etc. the banks will get you. They will not only charge late fees etc, they will ruin your financial reputation (the credit score is in essence your financial reputation reduced to a number, the higher the number the better your reputation).</p>
<p>If they ruin your reputation i.e. put a negative report on your credit report, they will charge you a lot more in interest.</p>
<p>Moral of the story: Do not borrow (student loan, car loan, personal loan) or use your credit card if you cannot afford to pay it back when the bill comes due.</p>
<p>HImom and others are saying the same thing.</p>