Credit Card Debts: Causes and Prevention

In this modern era, people prefer to hold credit card instead of cash money. They find that it is more secure to bring and spend with credit card. It has become a necessity rather than a luxury item. However, unwisely used of credit card could lead cardholders into trouble. They would just easily go bankrupt because of credit card debts. Here some of the causes of credit card debts.

One of the causes of credit card debt is due to the poor financial management of cardholder. Nowadays, people do not really plan for their spending. They buy things based on their first sight. The existence of credit card has made the situation even worse. Cardholder tends to spend their money without realizing that they have overused their saving. They only get to know it at the end of the month where the bank statement reached them.

The next reason of high credit card debt is due to economy downturn. During recession, most of the good’s price especially foods has gone up in the market. People are forced to spend more compared to the past. Although expenses increase, people’s income doesn’t really follow the trend. People will have to rely on the credit facilities in order to keep on their daily life.

Besides, the increment of facilities provided by the bank is another source of credit card debt. Due to the advancement of technologies, credit card does not just available to be used in shopping complex, even at home, cardholder can buy anything they want through internet. Commercial bank has expanded their usage where payment can be made through credit card online.

Furthermore, nowadays, people do not really save anymore. They settled most of their debt or emergency through credit card. Most of them think that saving is unnecessary with the owning of credit card. Due to this kind of though, they have troubled themselves into high financial debts.

Lastly, credit card debt is also due to gambling activities. Credit card is considered some form of instant loan from the financial institution. Gamblers can easily get money when they are out of cash. As a result, credit card has become a great financial support to the gambler. It has indirectly promoted the gamblers to go casino.

Prevention is better than cure. Early precaution should always be taken before anymore get involved in credit card debts. Below are some of the prevention methods that should be taken by cardholders.

The first method is to plan a spending budget. Cardholders could always make a list on items to be purchase every time before going for shopping. By doing so, they know what to buy and this could prevent them from paying for unnecessary items.

Next, cardholders should always make sure that they pay their bills on time. They shouldn’t delay their payment as bills will get longer from day to day. This is due to the fact that interest rate payment increases with high unpaid debt.

Moreover, early education should always be given to credit card users. Parent should advice their children about the dangers of credit card. They should also be taught of financial literacy. This would enable them to use their money more wisely.

Another way of avoiding credit card debt is by limiting the number credit card in their wallet. They should put a side or return the unnecessary credit card to the related financial institutes. Holding cash more money instead of more credit card would eventually help a lot. This could eventually help to reduce the amount of spending.

Lastly, in my opinion, I would say that discipline is the most important element in controlling credit card debt. People should always have a sense of self control in their heart when spending. They should know when to stop before it become too late. By having discipline and self control, I’m sure cardholder would not fall into credit card debts.

Related Links:


Tan said...

Yes, i agree that discipline is the most important element for involving ourself in credit card debts. Without it, every prevention methods would not work. Thanks for the sharing.

Anonymous said...

Living beyond one's means is the principle reason why so many healthy individuals fall into debts.

Falling into this trap is too easy for some people who do not know how to manage their finances.

When we are children, all our finances are handled by our guardians. Some children received informal basic financial education from their caring parents. Others do not. Many will enter adult life without a clue of how to manage their finances.

Without these financial skills it would be impossible to maintain financial discipline.

Better financial education for all children would prevent many of them falling into this trap in their adult lifes.

Anonymous said...

Does your blog have a contact page? I'm having trouble locating it but, I'd like to shoot you an email.
I've got some recommendations for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it grow over time.

My web site ...

Anonymous said...

Hmm is anyone else having problems with the pictures on this blog loading?

I'm trying to figure out if its a problem on my end or if it's the blog.
Any feedback would be greatly appreciated.

my weblog - semenax

Anonymous said...

Nice blog here! Additionally your site a lot up fast! What web host are you using?
Can I get your affiliate hyperlink to your host? I desire my website loaded up as quickly as yours

my web page; alteril Review

Anonymous said...

Hi there, just wanted to mention, I loved this blog post. It was practical.
Keep on posting!

Feel free to visit my website; semenax wiki

Anonymous said...

Thanks for the marvelous posting! I truly enjoyed reading it,
you will be a great author. I will remember to bookmark your blog and definitely will come back from now on.

I want to encourage you continue your great writing, have a nice weekend!

Feel free to visit my website ... male enhancement vitamin

Anonymous said...

Hello my friend! I wish to say that this post is amazing, great written and include almost all important infos.
I would like to peer extra posts like this .

My site; breast actives

Anonymous said...

Very nice post. I just stumbled upon your blog and wished to say that I've really enjoyed surfing around your blog posts. After all I'll be subscribing to your rss feed and
I hope you write again soon!

my blog post; virility ex male enhancement

Anonymous said...

It's difficult to find knowledgeable people about this subject, but you seem like you know what you're talking about!


Here is my web site; herbal weight loss

Anonymous said...

Hello, I enjoy reading through your post. I like to write
a little comment to support you.

My web blog - male enhancement supplements

Post a Comment