Credit card debts refer to outstanding balances owed on credit cards. These can accumulate due to unpaid purchases, interest charges, and fees. Repayment involves making regular monthly payments to reduce the principal amount and accrued interest.
Managing credit card debts responsibly is crucial for financial well-being. Timely payments help maintain a good credit score, which can secure favorable interest rates on future loans. Conversely, neglecting debts can lead to penalties, damage credit scores, and hinder access to credit in the future.