As we know, credit cards are now easily being offered by the banks. With credit card, one can easily make purchases without using cash. Credit card should be on good use but most people use it in a wrong ways. Credit card debt is one of the major contributors to the growing number of bankruptcy filings each year.
There are a few reasons behind it:
First, poor financial management.
When one out of cash, they will use their credit card. They thought that since they can slowly pay back but they never thought that every time they use it, then the amount will keep on accumulate.
Next, people don't save.
Everyone should start saving once working. We can’t predict what will happen in future and when we will face financial difficulties. When this people don’t have a way, then they will use the credit card.
Finally, gambling
Gambling can cause a disaster to a family. Gambling can be very tempting and when one keeps on losing and out of cash, the only way is to go for cash advance using the credit card.
So, it is important to prevent those debts and to stay debts-free:
First, manage your financial well. It is important to maintain a good financial management such as preparing a budget base on your salary. This will help you to think twice before making any purchases.
Keep the credit card at home when you go shopping. Use cash when making any purchases. Other than that, spend only when you are afford to make the payment on time. Don’t just thought of rewarding yourself and without thinking twice.
Remember, credit card should be use only when there is emergency and not for shopping or leisure purpose.
There are a few reasons behind it:
First, poor financial management.
When one out of cash, they will use their credit card. They thought that since they can slowly pay back but they never thought that every time they use it, then the amount will keep on accumulate.
Next, people don't save.
Everyone should start saving once working. We can’t predict what will happen in future and when we will face financial difficulties. When this people don’t have a way, then they will use the credit card.
Finally, gambling
Gambling can cause a disaster to a family. Gambling can be very tempting and when one keeps on losing and out of cash, the only way is to go for cash advance using the credit card.
So, it is important to prevent those debts and to stay debts-free:
First, manage your financial well. It is important to maintain a good financial management such as preparing a budget base on your salary. This will help you to think twice before making any purchases.
Keep the credit card at home when you go shopping. Use cash when making any purchases. Other than that, spend only when you are afford to make the payment on time. Don’t just thought of rewarding yourself and without thinking twice.
Remember, credit card should be use only when there is emergency and not for shopping or leisure purpose.
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