Credit Card debts: Causes and Prevention

Bankruptcy is a very real possibility for many people these days. Credit card debt is the one of the factor that cause most of the people suffered. It is because credit card is convenience to them buying without carry cash around. Many people lack the knowledge of how to handle credit and have attitudes that suggest that debt is acceptable. Other than that, Poor planning, overspending, lack of savings, high-interest loans also will lead to owing too much of credit card debt.

Following are 4 steps to prevent credit card debt.

Step 1: create a budget. A clear budget that includes all the monthly bill entertainment, food will prevent from over spending.

Step 2: maintain clear financial records and a regular payment schedule. When you pay your bills on time and you able to determine hoe much you have to spend for the month ahead.

Step 3: only use credit when you can pay it off within a few months. The longer it takes you to pay off the debt, the more interest that debt will incur and the more you will end up paying.

Step 4: Shred or tear up credit card applications that come to you in the mail. Just because you get the application doesn't mean you need or want the card. Destroying the application will prevent you from using it and protect you from potential identity thieves