Credit Card Debt 2018-2019
Credit card debt is a popular phenomenon in the commercial and social scenarios of today’s world. A lot of people hold ‘credit card debt’ these days. The mistake is equally divided on both the consumer as well as the seller where advertising tricks people into succumbing to false promises where the users also must know well enough to avoid such circumstances.
The reason why credit card debt related casualties happen is because there is lack of understanding of the concept of credit cards among people. They assume that credit cards are free money which need not be returned. Hence, the discipline maintained in spending hard-earned money is never to be found in credit card transactions.
People start overspending with credit cards and land themselves into credit card debt. They keep spending till the credit limit is reached. Some others consider this as a game and think that it is a defeat to not use their card much. Such irrational behavior puts you in a situation where paying back your credit card bills becomes an impossible task.
This adds to their credit card debt and the interest accumulates into a huge debt. Soon, people find that their current credit card will not fetch them anything and hence, start to look for another credit card. Utilizing the credit facilities, they do take no precautions and they start to ‘shop till they drop’. Again, the new credit card’s credit limit also draws to a close and once again bad debt is reached.
This is how people build on their credit card debts. The search further leads them to credit card debt consolidation and other credit card debt elimination methods. Quickly, they opt for such methods not because of their intention to clear debts but because of being attracted by low APR offers. Assuming it to be a kind of booty, they start to build their credit card debt again.
They have so far been spoiling their credit rating and it is understood that no one is ready to lend them money due to the credit history they have incurred. A secured credit card will be available for the moment where you have to deposit money into your credit account and avail the benefits of spending only 50-100% of it. In addition to this, only credit card must be used to spend the half of the money deposited.
This madness on the spending spree leads them to auctioning of their goods and bankruptcy is the ultimate paradise. Understanding how credit cards function can help you avoid all these problems.
Haven’t credit cards revolutionized our lives? You are nodding, as I can see. Of course, there are disagreements. Those responses come from people who are affected by bad credit rating, credit card debt, credit card frauds or those who are simply aware of the evils of a credit card. It could be said that there are no real evils and our eyes can find good as evil. Perceptions differ.
How many times have we lost our valuable money while going on to buy something precious? It is because we carried cash, lost it on the way or it was snatched by a thief. Technologies evolve from human needs and the long felt needs of the people for a suitable technology to replace cash (though not exactly) has led to the advent of credit cards.