Since the credit card business is getting more and more competitive, the rules and policies to apply a credit card is easier compare to olden days. Therefore, credit card debts happened. Causes:
1. Expenses more than income: If people spend more than their income, definitely they are in debt. For instance, recently the petrol price is hiking up, if people continue spending like before with their same salary, obviously they will be forced to step into a deep credit card debts' hole.
2. Poor money management: Credit card provides us future money to purchase what we want easily, but without good budget, people tend to buy recklessly and forget about the accumulated bill plus interest at the end of the month.
3. Using credit card as cash: Yes, it's convenient to use credit card to purchase anything anywhere. That is why people tend to use credit card instead of cash, thus increasing the debts in daily basis.
Prevention: 1. Use cash instead of credit card: If we purchase with cash, the feeling of the tangible cash is running low in our wallet or bank account will lead us to the feeling of how little money we own. So, it might help the credit card user to control their expenses.
2. Create a budget: Individuals must create their own budget in spending. Necessity comes first followed by other items. That is how we reduce debt and save money.
3. Education: Educate youngsters on how to manage their pocket money during their school times without over-spends is a way to prevent them to fall into credit card debts problems.
4. Cut up your cards so that you are not tempted to use them. Save only one card for emergency purposes.
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