Credit Card Debts: Causes and Prevention

Nowaday, the requirement to apply a credit card is much lower than before. Many of the fresh graduate students can easily to get a credit card after 3month getting the job. With the credit card the purchasing power was increased. It can help the economy in the Country. As a credit cardholder, we need to be smart in using the credit card. If the cardholder using the credit in the wrong way. It can bring him a huge credit card debt. The most common credit card debt was come from the interest charges on the late payment on debt. This interest chardges will compound every month if the debt cannot be clear. Many of the cardholder alway spend the credit to buy the thing they like without any cash on hand. It may also cause the interest charge on debt at the end of the month.

Besides, many of the e-commerce website are using credit cards to make transaction. It may cause the credit card data been theives and use the credit card to buy item on internet. Somestimes, the cardholder only can detect it when the card was embezzled.

To prevent having the huge amout of credit debt. Credit Card Holder should set a limit of spending using the card and also doing record on it. Furthermore, using Debit card was one of the way preventing the credit card debt. Debit card holder can only use the total amount in your card account, it was imposible to let you spend out of the money you have, so it will not bring you a debt in the future. Last but not lease, do not buying item in internet using credit card by using public computer, such as the computer at cyber cafe, University and etc... It will increase the risk the credit card theives and bring you a unrealise debt.