Credit Card Debts-Causes and Prevention

Nowadays credit card becomes very common in our life, more and more people apply to be a credit card user once they meet the required status. It is one of the typical payment methods in this century as the result of credit card transaction is often more secure than other forms of payment. However, it creates a enormous problem which is credit card debts because the credit card user is spending the future money and without saving at this moment.

There are numbers of causes to this debt. One of the major factors is users keep on spending without thinking whether they are afford. This situation usually happens in ladies as they are always losing their rational in shopping complex. For the economic factor, Poor people are more likely to be in debt as they are using credit cards as a ‘crutch’. After one of the credit card debts excesses its limit, they will apply another credit card to cover the previous one which led to the larger debts. Moreover, self-esteem also assists in the credit card debts. A high self-esteem person is easy to create credit card debts because they like to buy branded product which they are not afford to show off in front the people.

To avoid this enormous debt, we should always bear in mind that Credit cards should be used for emergencies only and remember that we have to pay off what we borrowed. It is also essential to effectively manage our finances. When we go out shopping, try to leave the credit card at home and do not spending money for the luxury goods that we are not afford to it. For the bill settlement, we should pay double for the minimum amount if we can afford because it could cover the interest and pay the balance more quickly. Indeed, the most effective way is cut off the credit card but it is advised that save one card for emergencies.