Credit Card debts: Causes and Prevention (0)
Wednesday, February 11, 2009 by , under Credit Card Debts, Prevention, Week 5
For nowadays, there are many convenience methods for us to paying. Credit is one of the method. Many people are like to pay by credit card; it is because the users are not need to really pay with their money at the moment. The credit card’s company will sent a statement to the users at the end of a month. The statement is stated the amount that the users has to paid. The users must pay the amount without over the expired date. Other wives, penalties and interest will be charged by credit card’s company.
There are many reasons for cause credit card debts. The first reason is the people are always belief about their future earning. When the users paying by the credit card, they will think that they may pay the amount in the end of the month, so that they may use their following salary to pay. This is the reason for causes the debt. The users cannot expect what they have to spend at next month, if there is some extra spending on next month, they will do not have enough money to pay the credit card’s debt. The second reason is most of the users do not have their financial planning. By doing a financing planning it may help the users to be more understand about their current cash that they may use. By understanding the financial situation, it may be easier to control the spending. The next reason is the credit is easy to be use and access. What is the procedure for using credit card? It is very simple only. When you decide to buy something, you just need to take the product to the counter than and give your credit to the person that at the counter, after that you may take the product back to your home. It is because the credit card is too convenience, it cause many users using it without consideration. And the last reason is the people of nowadays is easy to get attract by the new product. There are many new products are present on the market everyday. And the consumers especially the teenagers are easy to get attract by these product and purchase without thinking with their financial situation.
Although there are many reason for causes the credit card’s debt, but it also can be avoid. The first solution is education. By reduce the people of having credit card’s debt, education is very important. The government has to give the education to its people for how to manage themselves for escape from the debts. Besides that, the users have to do their own financing planning and clearly understand with their financial situation, and avoid them for spending the money without consideration. And the next solution is the users are encourages to set a credit card limit that under their financial ability. For example, An user’s salary is about RM3,000. If him set his limit at RM10,000 it will be increase the probability of the user to spent more. Lastly, the user may have to pay the credit card’s outstanding amount before the due day and make them escape from getting penalty or interest charge.
The credit card’s users are encourages to be consume smart. It is no point for having a heavy debt in your life.
There are many reasons for cause credit card debts. The first reason is the people are always belief about their future earning. When the users paying by the credit card, they will think that they may pay the amount in the end of the month, so that they may use their following salary to pay. This is the reason for causes the debt. The users cannot expect what they have to spend at next month, if there is some extra spending on next month, they will do not have enough money to pay the credit card’s debt. The second reason is most of the users do not have their financial planning. By doing a financing planning it may help the users to be more understand about their current cash that they may use. By understanding the financial situation, it may be easier to control the spending. The next reason is the credit is easy to be use and access. What is the procedure for using credit card? It is very simple only. When you decide to buy something, you just need to take the product to the counter than and give your credit to the person that at the counter, after that you may take the product back to your home. It is because the credit card is too convenience, it cause many users using it without consideration. And the last reason is the people of nowadays is easy to get attract by the new product. There are many new products are present on the market everyday. And the consumers especially the teenagers are easy to get attract by these product and purchase without thinking with their financial situation.
Although there are many reason for causes the credit card’s debt, but it also can be avoid. The first solution is education. By reduce the people of having credit card’s debt, education is very important. The government has to give the education to its people for how to manage themselves for escape from the debts. Besides that, the users have to do their own financing planning and clearly understand with their financial situation, and avoid them for spending the money without consideration. And the next solution is the users are encourages to set a credit card limit that under their financial ability. For example, An user’s salary is about RM3,000. If him set his limit at RM10,000 it will be increase the probability of the user to spent more. Lastly, the user may have to pay the credit card’s outstanding amount before the due day and make them escape from getting penalty or interest charge.
The credit card’s users are encourages to be consume smart. It is no point for having a heavy debt in your life.
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