Credit cards are convenient and great budgeting tool, but when we abused use, the years-long nightmare is started and unbelievable stress. Nowadays, millions of people are getting stuck in the seemingly endless cycle of debt stemming from misuse of their credit cards.1. Too many credit cards
Many people believe having many credit cards in wallet is an essential sign of prosperity. But, they were forget that every single used from credit card has to repay and if carrying with balance there is some interest will charges on whole amount (minimum 1.5%). So, too many credit cards will translate into too many credit card debts.
To avoid credit card debt the first thing is to have only those credit cards which absolutely essential.
Many people believe having many credit cards in wallet is an essential sign of prosperity. But, they were forget that every single used from credit card has to repay and if carrying with balance there is some interest will charges on whole amount (minimum 1.5%). So, too many credit cards will translate into too many credit card debts.
To avoid credit card debt the first thing is to have only those credit cards which absolutely essential.
2. OverspendingSpending too much on things is likely the most common cause of amassing credit card debt. This is because card owner are spending with the future money, they taking out that credit card and swiping it through to get what they want. Spending beyond their income will cause them to quickly become buried in debt.
To avoid overspending, should make a budget for each month necessary expenses, beside that make an own record for each time using the credit card so can easily calculate the amount for expenses before overspending.
3. Poor financial managementMany people will using credit card for setting up an automatic bill pay, transfer saving and investment contributions. Some time the payer miss paying monthly credit cards bills, the bank or financial institute will charge them late payment penalty or more higher interest. The charge mostly is higher than the interest what the received.
To avoid this problem, we can keep a calendar (electronic or hard copy) for record down the payments due date so each time can remember us when we using the calendar.
4. Litter saving or no saving 
Saving account is very important part of money management. Without saving or litter savings, we will likely reach for unable cover credit cards to unexpected or emergency expenses. This is a common mistake that can easily cause us to rack up credit card debt.
To avoid this problem is set up an automatic monthly transfer from our checking/current account to a saving account. The saving contribution will taken care for us, and in emergency, we won’t have to add charges to our credit cards.
Saving account is very important part of money management. Without saving or litter savings, we will likely reach for unable cover credit cards to unexpected or emergency expenses. This is a common mistake that can easily cause us to rack up credit card debt.
To avoid this problem is set up an automatic monthly transfer from our checking/current account to a saving account. The saving contribution will taken care for us, and in emergency, we won’t have to add charges to our credit cards.
5. Medical ExpensesNowadays many doctor clinic or hospital is accept credit cards payment. Medical problem is accidental happen without warning, we can’t predict when such problem will or will not occur. Since like that paying medical bills on credit cards is the most common ways to get trapped in debt.
To avoid this unforeseen medical bills we should maintaining an emergency saving fund to protect us. These bills may be unplanned for, but they are unavoidable. When problem arises, we able to draw a fund from the account to pay instead of racking up credit card debt.
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