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2008-06-22

credit card debts: causes and prevention


Do all of you know what is credit card? Now, let me share somethings about credit card to all of you. Credit card is very useful when the users need to settle some payment in emergencies or travel abroad. However, if the users use up their credit limits and max out their credit cards, they have to face the credit card debts. As s result, the users may have to find several ways to settle the debts and end up with tension, frustration and unhappy life.

Causes
Credit card debts can be caused by the users’ poor money management. Without a monthly spending plan, the users may spend most of their money on unnecessarily things. Finally, the users may also have doubt on where their money has gone. Besides, credit card debts also resulted when there is no money communication skill in the family. When the family members do not honest about what each other spend, the credit card holder may finally get shock with thousands of dollars in credit card debts. In addition, when the users hold too many credit cards at a same time, they will cause the credit card debts. The users may loss their self control and discipline to keep these cards in their wallet and not to over spend on them. Moreover, the more the credit cards, the higher the risk that the credit cards will be stolen. Thus, the users’ credit card may be stolen without their notice. Finally, this will result in large amount of credit card debts when they received the bank statement as their money has been spent by the thieves.

Prevention
Inability to control the credit card debts can destroy the users’ credit rating and even lead to bankruptcy. Hence, the users must practice direct debit so that they are able to pay back the debts each month as prevention is better than cure. The users must also check their credit card debt information regularly to make sure the records are correct and request for the sudden increase in their credit card interest rates. Furthermore, the users with many credit cards on hand should cut up their cards so that they are not tempted to use them and just save one cards for emergency purpose. The users are also advised to pay double the minimum payment if they can afford it. The minimum payment is usually just enough to cover the interest and some of the credit card debts. So, paying double can help the users to settle their balance of the credit card debts more quickly.

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