Credit Cards Debt: causes and prevention

Credit cards do provide convenient for most of us in our daily life. However, great responsibility comes with having a credit card. The number of people who now have credit card debts is at an all time high; credit cards have become easier to obtain and more tempting to use concurrently, which is a lethal combination.

With the debts rising, it is not surprising that individuals have started to realize the financial problem they have created by the constant and indiscriminate spending they have carried out.

What caused credit cards debt? Poor purchasing decisions, lack of information on credit card fees, and disregard for upcoming credit payments are among the reasons why many credit-card users are often hard-pressed in paying their debts.

Furthermore, poor money management also causes credit cards debt. Most people are unable to manage their expenses well and always spend over their income. People, who are experiencing under-employment, where they were over-qualified to their current position, may fail to balance out their expenses with their current income. These people tend to be irresponsibility as they do not concern about their future, by spending their future money.

So how can we prevent these problems?

Be credit smart. Applying for a credit card application means you are ready to assume the responsibility for paying your credit.

Use your credit cards wisely and sparingly. Remember: Paying goods and services using credit cards are more expensive than using cash or checks. Credit payments include interest and other fees. Use credit cards as sparingly as possible. If you really need to use credit cards, carry only the cards that you will actually use.

Avoid impulse shopping on your credit card.

Savings. Save living expenses for the period of three to six months. This can help you when you facing an urgent need to use money.