Cyber-Bargains

Credit cards debts can say is a common topic nowadays. Almost every one of us would have at least a piece of credit card. But do you really consider about the consequences after having it? Actually there are many factors that would cause someone into bankruptcy but there is also lots of prevention. The following are the causes and the prevention of credit card debts.

Causes:

Saving little or Not at all –

Most of the people do not know how to manage their spending and simply spend on those useless items which can cause to credit card debts. This will force us to pay interest on these purchases every month. So many families accumulate lots of debts is because of poor money management. They not only don’t have a monthly spending plan but also not keeping track of the monthly bills. This would cause us unaware of where our money is going. Besides that, some of the people will spend off their salary once they get it from the employer. In this case, if something unfortunate tragedy happen, he or she surely not enough money to pay for it.

Underemployment – if you are underemployed, this mean that you are working for less than the standard number of hours at your job. In this case, you should match your current income by cutting down your lifestyle. But most of us wouldn’t care so much about this. We will always think that spend first and worry later. So the credit cards debts would accumulate to become more and more.

Less Income, More Expenses – less income meaning that one people are having a low salary with the employment but making large expenses on purchasing. This obviously leads to a rise in debt. Besides that, if the main earner in the house has loses his job but the monthly expenses are not cutting down would force the family to use credit cards for groceries, utilities, and any other things that needed. As a result, credit cards debts automatically increase.

Prevention:

Keep Good Management of Your Finances – what type of scheme can help you become a more prepares and more organized consumer? Yeah, is a well-planned financial management scheme. This can help u to determine your monthly income and needed expenses in your lifestyle. You won’t choose to pull out your credit card from your wallet if you have a good management plan. In addition, you can avoid putting large amount of debts on credit card if you have some savings. You can set up a budget to yourself in order to

keep track of your expenses.

Always Pay on Time – in order to keep away from credit card debts, paying on time is one

of the best solution. Before using a credit card, ask yourself, “Do I have the ability to pay for this?” If you unable to control your finances and manage your card payment schedules, then you should not acquire a credit card. Besides that, paying on time can helps you to prevent from raising interest rate except if you are late paying. In addition, pay double the minimum payment if you can afford it because paying extra will pay your balance more quickly.

Avoid Extra Expenses – this mean that you have to adjust your shopping habits to reduce credit card debt. It is not to spend more, especially on the items that not needed. Shopping at smaller general stores, groceries shops or any nearest shops can help you to prevent from spending more on unnecessary items. But if your aim is the shopping malls then indirectly it can cause your credit card debt to grow. Less go out less spending, less spending less credit card debt.

http://www.3debtconsolidation.com/top10-causes.html

http://www.cardratings.com/howtoavoidcreditcarddebt.html

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