Many people use credit cards issued by their banks to improve their FICO scores, and others make use of advantages such as airline reward miles and cash back, but our customers often tell us that they’re confused by store credit cards. They ask, “What are they good for?” or “Why do I need one?”

For many people, the start of a new year is a reality check. You can certainly be forgiven for being reluctant to let go of the thrill and excitement of the holidays, but that excitement is no excuse to fall back into old, harmful financial habits.

According to a new study, Americans now carry an average credit card balance of $15,355. At the average interest rate of 18%, it costs $6,658 per year to maintain that balance – and that’s just credit card interest payments, not even making a dent in the principal credit card balance.

First things first: what’s the difference between secured and unsecured debt? Unsecured debts are those which aren’t exclusively tied to a physical asset. The debt on your car loan would be secured debt. The debt on your credit card is unsecured.