Credit Card Debts: Causes and Prevention

A credit card is a system of payment named after the small plastic card issued to users of the system. In the case of credit cards, the issuer lends money to the users to be paid later to the businessman. It requires the balance to be paid in full each month. Usually, if a user is late paying the balance, finance charged will be calculated which also call credit cards debt. These are due to over-borrowing, slack financial discipline, late repayment and not keeping track of credit reports.
Besides, there is also having some factors that dive a person towards credit card debt. Many people believe having too many credit cards in the wallet is an essential sign of prosperity and the larger the number of credit cards the more money is at their disposal. Moreover, people think that by repaying the monthly minimum they are doing their part towards paying the credit card debt. By paying only the minimum the credit card debt starts accumulating at a rapid rate. Thus, the credit card debts will land up 3 to 10 times the money they borrowed. Another factor is taking cash advances from credit cards. Many users treated credit card as a debit cards. This will cause the users have to paid heavy interest rates and penalty on cash advances. The high interest rates make the repayment tougher.
Although the credit card debts become a burgeoning problem for many users. We also can prevent and avoid it by some common methods. Such as, we can spend money only on buying things that are absolutely necessary to us. On the other hands, a budget is a tool that can tell you about your money where it will go before the money arrive. Hence, you will think before use the money. We also advise people not hold more than one credit card in hand. This is because if the people hold more than one credit card in hand will lead to hard remember the repayment dates. The repayment dates is varying with the credit cards the repayment of credit card debt become messier.
Nowadays, the credit card debts problem had become seriously and this is a signal bring to the users try to solve the problem as early as their can. (379 words)