Credit card holders may not think of it that way, but the loan that has the shortest time from receipt of the amount to penalty for late payment is the little piece of plastic which is used as much as a safeguard against carrying too much cash as a status symbol.

An advisory of the amount owed is normally received by the cardholder two to three weeks before the bill is due, and while there is a stated minimum payment, failure to pay in full attracts a very significant interest fee.

"Basically it is the highest cost loan you will get from a recognised financial institution," said accounting student Devon.

Of course, there is a limit on what the cardholder can spend, and he or she should be very much aware of their expenditure with the little piece of plastic that can be used to dig a huge financial ditch.

"A credit card is simple. It is a way to spend what you are going o earn in the next 30 days or so and, when it becomes due, if you don't pay off everything by the due date the interest starts to really pile up. So it is simple; be prepared to pay off in full or start to pay for what you spend," said long-time credit cardholder Carolyn.

And the 35-year-old has never gone into 'interesting' territory with her card. "I keep track and spend accordingly, so I can pay off one time and be done," she said.