Credit Card Debts: Causes and Prevention

Credit card debts is not a newly issue to us. We can easily access to credit cards nowadays. Advertisement, lead people to believe that they can live a lifestyle where money is no object and spending has no serious consequences. All those advertisements had shown only the good side such as you can bring happiness to your families but not showing what happen after that.

Causes:

• People may partial understood about credit card - lacking of knowledge of interest rates and information provided when they apply for credit cards also does not read by the applicant.
• Lack of financial and money management skills - People become more depending on credit card due to the convenient and yet encourage people to spend more or sometimes over the limit and buying things that not needed.
• Their attitudes towards debt - students feel optimistic about their potential future earnings and assume that they can easily settle their debts upon graduation.

Preventions:

• early education - set a way to manage your finances in order to avoid overspending on the credit card
• limit the plastic in your wallet - know the information about the credit card which is from your interest rate and fees to how to earn rewards and how long of a grace period you have.
• use it like cash, not a credit card
• pay the balance in full and on time is important to avoid accumulated debts

By taking a few steps of prevention today, tomorrow your finances will have a clean bill of health freeing you to live a life of opportunity rather than of difficulty.