Credit card problems are shockingly common, and once you start to accumulate credit card debt, finding a way out of the hole isn’t easy. That’s why it’s critical to avoid credit card debt traps as much as possible. By doing so, you can maintain your financial health. If you aren’t sure where the issues lie, here’s a look at 12 credit card debt traps that smart people fall into without realizing it.

1. Introductory APRs

Introductory APRs are low interest rates advertised as a form of incentive, essentially encouraging people to open up new credit cards. While those rates are usually incredibly enticing, the issue is that they don’t last. If you carry a balance beyond the introductory APR period, a higher interest rate will start applying. That can cause a debt (and the related payments) that once felt manageable to become incredibly cumbersome.

2. Balance Transfer Promotions

Like introductory APRs, balance transfer promotions usually allow cardholders to get a lower-than-typical interest rate on balances transferred from another card for a specific amount of time, such as 12 or 24 months. While they’re often enticing – particularly if the debt originally had a high APR – they aren’t always the best deal.

Balance transfers typically come with a balance transfer fee, which is often between 3 and 5 percent. Plus, once the promotional period ends, the regular APR applies to that balance.

Generally, a balance transfer is only a good deal if the associated fee is less than the interest that would have accumulated during the promotional period. Additionally, if the new card’s regular APR is higher than the previous card’s interest rate, the balance transfer may only provide real value if that amount is paid off before the new card’s APR comes into play. Ultimately, doing the math can help cardholders determine if the deal is solid or if it only seems good if you don’t look at the details.

3. Late Payments

Late payments on any debt can come with consequences. At a minimum, you may owe a late fee, and that may be sizeable. In some cases, late credit card payments also trigger a penalty interest rate, causing interest to accumulate far quicker than it did previously.

Usually, the penalty interest rate is the biggest issue, as the difference between the previous APR and the penalty APR is often sizeable. Plus, most credit card issuers leave the penalty interest rate on your account for at least six months, and failing to make those upcoming payments on time can extend the duration.

4. Special Financing Options

Some credit cards have special financing options for specific types of purchases. For example, one of the more common versions involves a “same as cash” repayment period. During the time window, the interest rate for that specific purchase is usually a very low rate, such as 0 percent. However, if you don’t pay off that balance by the time that time period ends, your total owed may skyrocket.

The reason the total owed can climb dramatically is due to what happens after the promotional repayment period ends. At that point, it’s not just that the card’s usual interest rate applies. In some cases, you’ll also owe the interest that would have accumulated (based on the card’s regular APR) since the purchase occurred. That can cause a sizeable balance increase to happen all at once, and it can easily leave you with far more debt than you expected.

5. Overspending

One of the biggest credit card problems is that credit cards can increase your chances of overspending. A splurge might not seem like an issue since you can pay the balance off over time. However, the problem is that it’s easy to fall prey to that kind of thinking. Then, a single splurge turns into two, then three, then four. The next thing you know, you have a sizeable credit card balance to contend with, and it can put a severe strain on your budget.

6. Getting Lured in by Perks

Many credit cards offer a variety of perks, such as cashback or rewards points you can spend. The issue is, if you’re carrying a balance and paying interest, what you’re getting in perks is usually significantly offset by what you’re paying in interest. Plus, the presence of perks may encourage you to use your credit card more often, increasing your chances of charging more than you can pay off in full at the end of the billing cycle.

Generally, perks only provide real value if you don’t carry a balance. That’s particularly true if it’s a credit card with a high interest rate.

7. Skipping Payments

Some – but not all – credit cards allow cardholders to skip the occasional payment without any penalty. While this may be helpful if you experience an unexpected financial hardship and need some breathing room, it’s critical to remember what happens. Any interest associated with the skipped payment ends up added to your balance, and it will start accumulating interest, too. That can have a surprising impact on the amount of debt you’ll have to tackle, particularly if you skip a payment whenever the opportunity arises.

8. Interest Rate Adjustments

The vast majority of credit cards come with variable APRs. That means the interest rate is impacted by changes to the prime rate, which is set by the Federal Reserve. So, if the Federal Reserve raises rates, your credit card’s APR can climb to match that increase. Along with increasing how much interest you generate, it also leads to a higher minimum payment.

9. Withdrawing Cash from an ATM

Many credit card companies allow cardholders to withdraw cash from ATMs. Essentially, credit card users can tap into their credit limit but gain the convenience of spending physical money.

Now, most cardholders understand that any cash withdrawn can accumulate interest, just as charges do when using a credit card at a register. However, some people don’t realize that credit card companies often charge additional cash-advance fees when they use the card to withdraw cash from an ATM. While the cash-advance fees may seem small, some are as high as 5 percent. Plus, there may be ATM surcharges, too.

Ultimately, using an ATM for a cash advance can lead to a lot of fees, pushing your balance up quickly. If you don’t pay everything off when the bill cycles, then you’ll owe interest on the withdrawn amount and any charged fees, too, causing a simple transaction to cost a lot more than most people expect.

10. Making Only the Minimum Payment

With installment debt, making only the minimum payment isn’t always problematic. Those types of debts – often in the form of loans – have a definitive end date. As a result, if you make the minimum payment, you’ll pay off the entire balance within the preset number of months (typically no more than 84, which works out to seven years, not including mortgages) without issue.

Credit cards work differently. The minimum payment is based on a percentage of the total balance and any newly accumulated interest. Suggesting you don’t rack up any new charges, the minimum payment you owe shrinks over time. As a result, even if you make the minimum payment each month like clockwork, it could take several years, if not decades, to pay the balance in full.

Precisely how long it takes does depend on the total balance, with smaller balances taking less time. Still, it’s easy to fall into a trap by not realizing how long you’ll carry credit card debt even if you pay what’s required. Plus, that means you’re paying substantial sums just to cover the interest, which can harm your budget and financial health.

11. Limited Access to New Credit

While having a credit card can be beneficial to your credit score if you limit how much you use it and make your payments on time, there are plenty of situations where credit cards can hurt your ability to secure new credit. Your credit limit size can impact your access to new credit cards or loans, as lenders factor in the total amount you could borrow, not just your existing balance.

Similarly, mishandling of your credit card – such as late payments – can harm your credit score. That may also make securing new credit harder.

12. Fraudulent Charges

Generally, credit cards offer better protection against fraudulent charges than debit cards. However, if an unauthorized purchase occurs, you have to report it to your credit card issuer within 60 days of receiving the statement with the fraudulent charges on it. If you don’t, you can be on the hook for the amount spent, regardless of whether it was unauthorized. While this isn’t usually an issue for anyone who carefully reviews their transactions regularly and will quickly report any suspected fraud, it could be an issue for anyone who doesn’t monitor their bills, leading to additional debt they didn’t expect.

Do you know of any other credit card problems that can get people in over their heads? Do you have any tips that people can use to help manage their credit card debt more effectively? Share your thoughts in the comments below.

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Tamila McDonald

Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.