Credit card debts: Causes and prevention

Nowadays, credit card is a very common tool for everyone and which is no longer the symbolize of wealth. With the credit card, we can spend our "future money" 1st which mean we can spend more than the money we earn now so it is one of the reasons that credit card can become so popular.

The causes of credit card debts:

1. It is very easy to get credit cards, multiple credit cards in fact. Issuers of credit cards make it easy for you, if you have had no debt problems in the past. If they seem to take it lightly, it is understandable that their customers do too.
2. Your friends, neighbours and work colleagues will probably all have multiple credit cards, talk about them and flash them around from time to time. That can all influence your own attitude to credit card debt.
3. Bank's promotion of credit card is very attractive such as 0% interest, lucky draw to get a new car, etc..
4. Poor money management will make you into very big trouble. A monthly spending plan is essential. Without planning, the debts will become more and more as the time passed.

Prevention of credit card debts:

1. A credit card should only be used as a convenience to pay if you have no cash on you, knowing that you can pay off the balance before interest charges kick in
2. Do not use the debt to pay off debt. You're just shuffling your debt around and incurring more debt each time you do so.
3. Planning all your borrowing, write down a monthly budget, and then compare to your total income.
   
4. Do not using any credit card at all. This is the most efficient way to prevent all the credit card debts.