Credit Card debts : Causes and Prevention

Causes that lead to Credit Card debt may be in the following reasons:

Lifestyle
People may spend more than they earn to create the lifestyle they prefer. They may apply Credit Card to afford their lifestyle. They would like to have luxury living style that they need to furnish their house, always having dinner in high-class restaurant, buying a limousine and so on which is cause Credit Card debt to be a lot.

Consuming
Nowadays, many shops did have the Credit Card device that allow customer paid for anything they buy by using Credit Card. By using Credit Card, people no need to bring a lot of cash go to shopping. This may lead to they attend to buy thing they regret. They just need to brought a small, tiny Credit Card go to the shop they prefer and ask the sales person to pack all the thing they like. Without using the cash, they would not know how much they actually expand, they will know until the bill send from bank which may cause a lot of debt need to pay.

The Society
Credit card interest rates are high; therefore the profits can be high. Banks and other credit card issuers are after their slice of that big money. Besides that, friends, neighbors and will probably all have multiple credit cards, talk about them and flash them around from time to time. This can all influence a person own attitude to credit card debt.
People see other people buy new furniture, go on exotic vacations, or go out to expensive restaurants all the time. Even if they never know if other people are doing so on credit card, they may want the same. But those people do not have the immediate cash, so what do they do? Jump on the credit card train? That is what the society may be pushing people towards the Credit Card debt.

The following is providing some prevention of Credit Card Debt:

Photocopy the credit card offer, including the interest rate and terms. Create a letter to your credit card company/companies stating that you are thinking of switching to their competition because they are offering a far more reasonable interest rate. Credit card companies do not want to lose your business. Nine times out of ten they will match or even offer a lower rate than the competition has offered.

Cut up your cards so that you are not tempted to use them. Save one card for emergencies.

Do not over spending that you can afford to pay. Plan all your borrowing. Write down a budget for each month, making sure you have listed all your regular expenses that are fixed and unavoidable, and those over which there is some flexibility. Compare that total with your income. If you have a surplus, then you can think about those extra purchases you had in mind. If not, don’t think any more about them. You cannot afford them, and cannot afford to borrow.

Remind yourself every day that you are only going to use your credit card when you have no cash on you, as a convenience, and you will repay it before interest starts to accrue.