After the devastating effects of the recent financial and economical crises, the Americans have faced a severe decline in their financial status. This affects those people more who are under debts. The People have taken loans for various needs, some of them took just for luxuries but others were in real needs. House loan and education or student loan are the types of loans which are the need of the people but credit card loans are those loan that are mostly used for the purchase of those items that for the luxuries.