Credit Card debts: Causes and Prevention

Most of the people now are holding at least one credit card in their hand. Credit card is a type of “post-paid” payment method that enables the card holder purchase 1st then makes payment later. For example visa card and master card. It is very convenient as the card holder does not need to bring a lot of cash out to buy a particular thing. However, due to its convenient and it is a post paid service, there is huge amount of credit card debts that owed by the card holders.


What are the causes of credit card debts? For most of the card holders who are over 21 years old, the big reason is they use their cards without anticipating how the bills will be paid off. Normally, they will spend more than what they can earn. When the credit card bill comes and the holder is unable to pay the bill, he or she will postpone the payment of the bill. This will cause the amount due become more and more because of the interest charged. For the people who always do not consider well before purchasing, it is easier to cause a huge amount of debts.

Thus, prevention is better than cure the credit card debts. Firstly, get a credit card that has the lowest interest rate possible so that you do not need to pay higher interest charged. Secondly, do not always depend on the credit card and get use on it. If can, use cash to purchase and only use the credit card in emergency. Besides that, do not buy anything that you cannot afford and useless.


There are many cases of credit card debts caused the holders become “bankrupt” and commit suicide due to unable to pay off the debts. Thus, better consider carefully before purchasing anything by using credit card.