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Hi, everyone! This week article is on one of people’s major concern which is credit cards debts. Credit cards are very common in this century. According to Wikipedia, it is a part of payment system which uses a small plastic card for payment. The issuer of cards allows the user to borrow money to pay for goods or services to the merchant in advance.
Credit cards can be very convenient if it is used properly, otherwise, you’ll be surrounded by load of debts which may cause bankruptcy. I’ll share some of the causes and prevention of the credit cards debts in this article.
Maintaining expenses on a reduced income- Excessive spending is one of the main causes, especially when users are experiencing reduction in their monthly income. If users still spend as if they are having their previous income, they will soon find that their credit cards’ monthly charges will be doubled or tripled up. A fast and effective way to prevent this is creating a new budget which can get your spending under control. Users will have a clear view on how much money they have each month and how many they need to spend for the month.
Low or no savings- It is important to contribute money to the savings account regularly. However, if you’re contributing very little or no fund to savings account, your savings may not able to cover unexpected or emergency expenses. An easy way to prevent from adding charges to credit cards during emergency is set up an automatic monthly transfer to your savings account. With this system, you would not need to worry that you will forget to set your funds aside.
Poor money management- Money management includes everything from monthly budgeting to bill paying to savings and investment contributions. Therefore, failing to manage any of the areas will cause you to loss control on your finance. For instance, if you fail to pay your monthly credit card bills, you will be charged for late payment at substantially high interest rates. The same solution for the “low or no savings” is applied here. Users should consider setting up an automatic bill pay transfer to ensure that they never miss out any payments.
Overspending- Spending do helps to boost up the economy but spending too much on unnecessary things is the most common cause of increasing credit cards debts. It seems impossible to stop swiping our credit cards to get things that we want with all those glittery advertisements which keep on persuading us to buy, buy and buy! In order to prevent overspending, set a budget on your necessary monthly spending and stick to it!
Prevention is always better than cure. Think twice before you intend to purchase using credit cards and avoid mistakes that lead to burdens of debts. Good luck, people! 
For more in-depth details, please visit the web sites below:
http://www.debtfirms.com/credit-card-debt.html
http://www.3debtconsolidation.com/creditcardmistakes.html
4 comments:
Planning ahead on your expenditure helps to prevent overspending. Try to avoid using credit cards if you're a kind of person that do not know how to control your spending. That's the best solution of all.
altough credit card is bring many advantages and convenient to user, the user also need to planning to use their credit card smartly. if not, the user will be become a losser and owed many money to the credit card company. so, all user of credit card must smart when use it.
Our Moments, Rainie: Thx! I agreed what you all have shared here...Nowadays, even teenagers have credit card debts surrounding them. How sad~
payment mode By cards are demanded method in the market
Plastic CardS
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