WHAT IS A CREDIT CARD? 
Any card that may be used repeatedly to borrow money or buy products and services on credit. A credit card, such as VISA or MasterCard, allows you to pay for sales or services by borrowing against your line of credit with the credit card company and to make monthly payments on the outstanding balance. A charge card, such as American Express requires payment in full each month of the outstanding balance charged to the account.
Any card that may be used repeatedly to borrow money or buy products and services on credit. A credit card, such as VISA or MasterCard, allows you to pay for sales or services by borrowing against your line of credit with the credit card company and to make monthly payments on the outstanding balance. A charge card, such as American Express requires payment in full each month of the outstanding balance charged to the account.
Cause credit ca
rd debt
Poor money management : Do we really know where our money is going? Without money spending plan, you have no idea where your money is going. You may be spending unnecessarily each month.
Financial illiteracy - Many people don't understand how money works and grows, how to save and invest for a rainy day, or even why they should balance their checkbook.
Reduced or lost of income: A divorce, death of spouse or unemployment may cause a serious debts. If there is a huge gap between income and expenses, the easiest way to fill in the gap
with credit card debt.
rd debtPoor money management : Do we really know where our money is going? Without money spending plan, you have no idea where your money is going. You may be spending unnecessarily each month.
Financial illiteracy - Many people don't understand how money works and grows, how to save and invest for a rainy day, or even why they should balance their checkbook.
Reduced or lost of income: A divorce, death of spouse or unemployment may cause a serious debts. If there is a huge gap between income and expenses, the easiest way to fill in the gap
with credit card debt.
Prevention method
Cut Up Your Cards
The best way to reduce credit card debt is to STOP using credit cards! There is no need to have more than one card, so pick the one with the lowest interest rate and cut up the rest. The one you keep should be deemed an “emergency card”. These are true emergencies, not mere inconveniences
Apply debit cards
Debit cards look like credit cards, but operate like cash or a personal check. While a credit card is a way to "pay later," a debit card is a way to "pay now." When you use a debit card, your money is quickly deducted from your checking or savings account. Therefore, you won get debt because over expense.
Control expense
create a budget and stick to it. A clear budget that includes all of your monthly bills, food, entertainment and miscellaneous expenses will prevent you from spending thoughtlessly and buying without thinking twice.
Cut Up Your Cards
The best way to reduce credit card debt is to STOP using credit cards! There is no need to have more than one card, so pick the one with the lowest interest rate and cut up the rest. The one you keep should be deemed an “emergency card”. These are true emergencies, not mere inconveniences
Apply debit cards
Debit cards look like credit cards, but operate like cash or a personal check. While a credit card is a way to "pay later," a debit card is a way to "pay now." When you use a debit card, your money is quickly deducted from your checking or savings account. Therefore, you won get debt because over expense.
Control expense
create a budget and stick to it. A clear budget that includes all of your monthly bills, food, entertainment and miscellaneous expenses will prevent you from spending thoughtlessly and buying without thinking twice.
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