Nowadays, more and more people is applying credit card. And this make the credit card debts are increasing rapidly. For Malaysia, the current credit card debt stood at RM24.4 billion but it was relatively low compare to others religion such as England which is facing a trillion of debts. The credit card debt is creating more and more stress.
Here are the some causes for credit card debts:
-Less income, more expenses
-Saving little money or not at all
-Divorce
-Poor money management
-Hoping to win lottery
-Underemployment
-Big medical expenses
-Financial ignorance
-Non financial communication
For more details, you can visit the website below.
http://www.3debtconsolidation.com/top10-causes.html
Here are the some methods for prevention of credit cards debt:
-Try to get the better offer from the credit card company- this can help to reduce the debts.
-Pay more than the minimum payment require by the credit card company or settle all the debts before making further purchases.
-Cut all the credit card; just remain one for emergency use.
-Use the equity to borrow personal loan to settle the credit cards debt, because normally the personal loan’s interest is lower than the credit card debts’ interest.
For more information, you can visit the website below.
http://www.mozdex.com/prevent-credit-card-debt/
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Yup even credit card funtion provide many benefits to us..but we have to careful when apply it..
everything have their pros and cons. just depends on how you think and the way you use it. even you just use cash without a credit card, you can still be owing debt to others by borrowing from others.
You are right that credit card debts increases due to poor money management Also people use this money for granted they do not plan that how much they should spend which is the situation Less income, more expenses.As their expenses are already more than income so they can not save for future and situation becomes more worst