Nowadays, almost everyone can have one credit card on hand. But what is credit card? A credit card actually is a any card that entitling holder of the card to buy goods and services based on the holder's promise to pay for these goods and service later. However, this may caused the numbers of credit card debts increase until create a major problem of bankruptcies each year.
Here are some reason that caused credit card debts:
a) Less income and more expenses - when someone loses his job or and his monthly expenses continued increased, this obviously leads to a rise in debt.
b) Poor money management - people who did not have a monthly spending plan and keeping the monthly bills will lead them unware where the money is going. This forcing you to pay interest on that money.
c) Saving little or not at all - everyone should have saving money habit to face an unfortunate tragedy happens. If you do not have enough money when there is an emergency, you will suffer a much more tragedy.
Even though credit card can caused a seriously debts to somebody but there are still several debt prevention methods:
a) Pay on time - Sometimes, the credit card companies can raise your interest rate if you are late paying to the creditor. Thus, in order to reduce the risk of spending too much money,and it is to better pay on time.
b) Manage your finance - a good strategy will help you control on your credit card using. You must identify your monthly income and the needed expenses every month in order to prevent over spend.
c) Self control and discipline - one of the best practices is to have a direct set up on your own so that able to pay back the full amount of debt for every month. Therefore, self-control and discipline to keep these card is important in order do not over spend.
Related links:
http://en.wikipedia.org/wiki/Credit_card
http://littleangele-commerce.blogspot.com/2009/02/credit-card-debts-causes-and-prevention.html
http://www.3debtconsolidation.com/top10-causes.htmlhttp://ecommercesite.wordpress.com/2008/06/25/credit-card-debts-causes-and-prevention/
http://www.cardratings.com/howtoavoidcreditcarddebt.html
1 comments:
i found the debt prevention's section are likely useful. Especially for the Young Generation with at least one credit card on hand, financial management & self-control on over spending is pretty entitle.
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