Credit Card : Causes and Prevention

WE get to apply credit cards everywhere, it’s just too simple. You may even sign up credit cards at shopping mall. Thanks to our banks for promoting their cards so hardly.

However, do we really know how to swipe our cards well?

Have you ever imagine you end up with flooding with lots of credit cards debts?

Can you imagine many young people at your age declaring bankruptcy?

So, what makes them to end up with this?

1. People not working out a budget and they tends forgetting about occasional items such as school expenses, Christmas, Chinese new year or Hari Raya.

2. Having too many credit cards. Some people having too many cards on hand, not 1 but perhaps 5.

The more credit cards a person has the more likely they are to use them.

3. Missing payments. Some people tend to forget to pay for their credit cards debts when due. It’s too late when they recall to pay as the debts are too heavy to pay with all the interest payments.

4. General overspending.Girls especially with shopaholic attitude tends to grab things whenever they shopping. They end up buying things that are not necessary and overspending.

5. Clients being loyal to credit card providers. Customers being loyal to their credit card providers although they’re offering higher interest rate compare to others.

6. Not prioritizing debts. The credit cards debt is built up by not paying expensive credit card debt first.

7. Getting advice from the wrong places. Some credit cards providers try to persuade the customers by asking them to apply for other cards to pay for the existing debts.

So, how we can prevent this from happen to us?

1. It’s essential to develop a monthly budget and stick with it so that we can track is there unnecessary purchase
.

2. You’ve to clear in mind that you only use this credit card when you are sure you can pay the balance off at the end of the month.

3. Not to hold more than 2 cards at a time, hold only the number of cards that you comfort with.

4. Customers are advised to apply for direct debit to avoid any missing payments.

5. Credit card holders advice to change your credit card provider oftenly once the low or interest free period is over. Remember credit card companies have no loyalty to you so don't be loyal to them.

6. If you do not have enough money to pay for full credit cards debts for that period, always keep in mind to pay debts with costs highest in prior.

7. Avoid getting advice from credit card debt advice firms who advertise on TV, Radio or in the tabloids. They may be cheating.

So people, clear your credit cards now before it's too late.

Cheers.