Credit card debts: causes and prevention:

Money can buy almost everything or can it be said that credit cards can buy everything now. Nowadays, it’s a common sight to see every people to pay for everything from groceries to gasoline. However, the convenience of using credit cards can lead to severe credit card debt problems especially the global economic is now in the shadow of recession and highest unemployment rates. There is no doubt that credit card debt is one of the leading causes of financial trouble for people today. There are numerous ways that a person might find himself or herself in credit card debt. Below are some of the causes of credit card debts.


1) Poor money management.
Without a monthly spending plan you have no idea where your money is going. You may be spending hundreds money unnecessarily each month. Thus it is essential to have one. Planning is just writing down your expenses and income and reconciling the two. Through an effective planning, you will be save a lot during monthly spending.

2) Unemployment
The global economic is now in the shadow of recession, this lead to the highest unemployment rates. People, who faced unemployment, may use credit card to pay their cost of living and they may found difficult to pay back the money.

3) Irresponsible spending.
These days, people want things and want them now. Credit cards enable impulse spending; it can be very difficult for some people to control their spending and lead to credit card debt.

Problems with credit card debt have been a worldwide phenomenon; many people around the world seem to be lost regarding how to solve them. Here are some useful tips in order to prevent credit card debt.

1) Keep good management of your finance.
With a good financial management plan, you can become more prepared and more organized and even won’t choose to use your credit card. Buy only those things that are necessarily.

2) Use only Cash.
The best solution for dealing with credit card debt is avoided using your credit cards to make daily purchase like groceries so you don't pile on any more debt. However, if you prefer not carry too much of cash, you can get yourself a debit card which have the same function as credit card.

3) Cut spending.
In order to control of your credit card debt, you will have to change your spending habits. Using the information in your budget to guide you, such as cutting unnecessary expenses, and see if you can also lower the amount you spend on necessary bills. Use all of the money you save to pay off your credit card debt.

4) Control yourself.
People who know his or her limits and applies it to his or her daily life is a person who can control his spending barrage. The one thing to remember regarding the use of credit card, it is still your discretion. You can use it or you can choose to save money instead.

5) Always pay on time.
One of the most essential factors of credit card debt prevention is pay your balance in full on time to avoid debt. People who can control their finances and manage their card payment schedules are the ones who not often obtain credit card debt.

6) Keep your credit cards to a limited number.
Most of the people have too many credit card, this make them have mounting credit card debts. Choose the right card for you. If you want to have a card that you can use everywhere, try just having a Visa, MasterCard, or American express card which are all used everywhere. To avoid apply too many credit card.

7) 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. Cards that have low or no fees at all and have interests that are low also, are the ones that are preferably appropriate especially to those who are only beginning to use credit cards.