Nowadays, credit cards became very common to everyone already. I believe that every family at least got one member holding a credit card. Credit card brings a lot of convenient to everyone but do you all know credit card also bring many disadvantages to us? Credit card can lead us to bear with a huge debt if we didn’t well manage in using credit card. Lets me show you all what actually cause credit cards debt and some way to prevent bear with huge credit card debt.
Here we go……
The cause of credit card debts
1) Poor Money Management
Poor money management is one of the reason to accumulate a lots of credit card debts. Many family or card holder do not have a monthly spending plan and also didn’t keep track of the monthly bills makes them unaware where the money going. Besides that, they might be spending towards a lot of unnecessary things using credit cards and this force to pay interest on these purchases every month. When the bills come they only get shock and realize there is a huge debts there. It is too late.
2) Underemployment
Underemployment meaning not getting enough working hours at jobs. Many people, their salary just can afford to live in a basic life style but they not satisfied. What they will do? They will use tomorrow money, which means using credit card to buy all luxury things to fulfill their desires. After couple of times, they will found difficulties to pay back the amount.
3) Interest
Many cardholders never fully repaying the entire sum of the debt, they will only like to pay the interest and the minimum amount of principal when the debt is due. Debt accumulates and increases via interest and a penalty when the consumer does not pay all the debts before due.
Here some tips to prevent credit card debts…
Preventions of credit card debts
1.) Keep Good Management of Your Finances
The 1st thing to prevent getting suffered with credit card debts, a well-planned financial management scheme can’t be missing up. This will help you become a more prepared and more organized consumer. With a great management plan, you won’t even choose to pull out your credit card from your wallet. Avoid purchasing all unnecessary things and review the bill statement every month.
2.) Choose the Right Card for You
This is one of the most important initial steps regarding your credit card use. Choosing the exact card serves you the entire well. In additions, choose the card that with no annual fees and low interest rate. Choose the card that easy to make payment so that you will not lazy to make payment until accumulate a huge debt.
3.) Always Pay on Time
Paying on time is one of the best solutions to shun away from debt. People who can control their finances and manage their card payment schedules are the ones who rarely acquire credit card debt. Clear all the debt on time, do not wait until the due date and get charged by penalty.
Be a smarter credit card holder….
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