Credit Card debts: Causes and Prevention

Nowadays, credit card debts become a serious problem to many people. Credit cards have convenience to us and improve our security when shopping or traveling, but if we misuse credit card it will increase user liabilities

Why credit will lead to people owe huge liabilities? How can we prevent it? Let me discuss to

u all…

Causes:
The major reason cause credit card debt is people only pay the minimum amount and interest, they won’t pay full amount on their spending. The debt will keep increasing. Penalty and high interest will give to user if their late pay or unpaid. Some companies charge yearly membership fees of anywhere from $20 to $100.

People have lost their job, but sundry expenses still need to spend. Without income can’t cover spending. Price of goods and services keep increasing but income reduce or no changing.

Poor money management also a reasons increase credit card debts. Without budget spending plan, we can’t control our spending. We need clear our sundry expenses and extra expenses.

Prevention:
Have to create budget on your spending, try reducing spending and avoiding some unnecessary spending. Monthly income must can cover spending and save fixed amount money into bank

Reduce chances use credit card, pay cash rather than use credit card. It just use for emergencies purpose.

Try paying the full amount on monthly spending, don’t let credit card’s companies charge penalty to your spending. Always check your spending list and spend below income.

http://en.wikipedia.org/wiki/Credit_card_debt

http://www.debtcause.com/

http://www.credit-land.com/articles/articles_page_68600_1881780_120.php