The causes of credit card debts are varied, but usually have their origin in the following factors listed below in the article.
– With a credit card, you have almost no knowledge of indebtedness.
– The credit card is for some consumers “a way of borrowing almost without knowing it”.
-The lack of knowledge about the interest rates of the credit card and fees.
Five tips to help you better manage credit card debts
Buy only what you can afford
Buying more than you can bear financially it is not a way to control your finances. Make sure your expenses correspond to your income, do not overspend.
Buy only what you need
Buying things you do not need is not recommended if you want to leave room for credit to meet unexpected urgent expenses. Unnecessarily accumulating debt means having to spend part of your future income to debt repayment, diverting resources from the real things you care spending.
For small payments, do not use the card
Using the credit card for small amounts may seem unimportant, but many small amounts subsequently due, may lead to an unexpected debt. Therefore for those small payments, don’t use your credit card, but cash.
Set credit cards usage limitations
Set credit cards usage limitations to avoid overspending. There are usually strong commissions for overspending. If you see that you’re going to need more money, address your bank and find other means of financing-more suitable and cheaper options.
Always pay on time
Paying late, no matter how much, always carries strong commissions. The negative effect of non-payment on your credit card is also important, no matter if it is a large or small amount. If such thing happens, you may want to consider credit card consolidation options to deal with the debt.