by Joseph Kenny | 03/8/09

Times are tough across the globe, financially speaking, and a result, credit card use is definitely on the rise.

A natural consequence of this, of course, is that credit card DEBT is on the rise as well! As more and more people find themselves locked into making credit card payments that they simply can't afford, it's a time when even the slightest irresponsible mistake when using a credit card can spell the difference between getting through the recession unscathed and total financial devastation.

That said, there's a particular credit card fee that many are getting slapped with that makes all the others pale in comparison: the dreaded over limit fee.

What is an over limit fee? Simply put, when you try to make use of your credit card to make a purchase that is beyond the credit limit that's been established on your card. When you do this, more often than not, the bank that issued your card will allow the transaction to go through anyway. This isn't just graciousness on their part, however - in exchange for this "service", they are likely to slap you with a fee known as the over limit fee, a particularly deadly form of hidden fee that you can ruin your credit in a matter of months if you aren't especially careful.

What distinguishes the over the limit fee from other credit card fees is that it's not a one time affair. With other fees, you might find yourself paying a large lump sum now and then for this or that irresponsible action, but the over limit fee continues to charge you month after month until the balance of your card is paid back down below the imposed credit limit.

Obviously, this isn't a *huge* problem so long as you notice that you've exceeded the limit and do what is necessary to pay it as soon as you can, but many people just don't take notice until it's too late. While at first you might only be racking up 30 - 40 dollars a month in overlimit fees, over time that will add up to thousands. In addition, the more fees you're saddled with, the more you're going to have to pay in order to bring it back under the limit once more. For many people, these fees get so out of hand that they simply can't make the payments at all anymore. When that happens, disaster isn't far behind.

Therefore, it's vital to do all that you can to avoid an over limit fee on your credit card transactions. Start by making absolutely sure that you know your limit at all times, and never exceed it. If you feel there might be an emergency in which you'd need the extra credit, you should simply take out an emergency credit card which is never used except for that specific purpose; it's much better than paying the fees on an over-limit card.

You can also check with your credit card provider for other ways to keep your spending in check. Many offer an alert system that lets you know when you're nearing your limit, and some of them will even work with you to raise your limit instead of imposing fees in the first place.

The over-limit fee is one of the most disastrous fees that can strike a credit card holder. As such, you must be on your guard against it at all times, and fully prepared to counter it in the event that it should arise.