A lot of people use credit cards as a "crutch." If they can't afford something they really want, they charge it. Then when it comes time to paying the bill they pay the minimum amount due (very bad thing) only. This then accumulates a good awful amount of interest and the next month when you get your bill, the balance is about the same.
Prevention
1.Limit the number of cards that you have. If your cards offer low interest balance transfers, transfer the balances from your other cards onto the card with the lowest rate.
2.Pay at least twice the minimum. Paying the minimum will prevent you from paying off the credit card for many years.
3.Renegotiate your APR at least twice a year. Give a call to your credit card company and speak to a representative to see if you are eligible for a lower APR.
4.Stop charging everything. An effective way to manage a credit card is to charge only things that you can afford to pay off at the end of the billing cycle.
5.Try to pay off the balance during the interest free period. If your credit card offers an interest free promotional period, make the most out of it by paying off any debt that you have accumulated by the end of the period.
6.Look for a rewards card. These cards allow you to get merchandise from your credit card company.
2.Pay at least twice the minimum. Paying the minimum will prevent you from paying off the credit card for many years.
3.Renegotiate your APR at least twice a year. Give a call to your credit card company and speak to a representative to see if you are eligible for a lower APR.
4.Stop charging everything. An effective way to manage a credit card is to charge only things that you can afford to pay off at the end of the billing cycle.
5.Try to pay off the balance during the interest free period. If your credit card offers an interest free promotional period, make the most out of it by paying off any debt that you have accumulated by the end of the period.
6.Look for a rewards card. These cards allow you to get merchandise from your credit card company.
Causes
1.Public are not aware of the danger of improper and excessive use of credit cards.
2.The process to get a credit card is very easy.So many people tend to have many credit cards
3.The interest keep on accumulates and cause difficulties to pay bay due to the delay payment
4.Credit card being used even for small sum of amounts.
1 comment:
topic that attracts me...i get to knw the causes and prevention of credit card debts..so i can be more careful in the future...
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