Nowadays, credit card becomes a common instruments where many peoples now use it to pay for their bill in their daily use. Actually, the procedures and terms for applying credit card in nowadays is much simplier if compare to the past time. This may due to the competition between financial institutions where they try to attract more customers by lower down their interest rates and conditions. It is not surprising if you can found out that a person can hold 5 credit cards at the same time. However, everything in this world is double sided which are the application of credit card become easier now but it is not easy for the card holders to settle their debts. So, this week let me hare with you all the causes and preventions of credit cards debts.
CAUSES:
Income vs Expenses 
A person must spend their income according to their expenses. Peoples alway think that they are able to pay for the bills when they want to buy something that is more expensive which the things is not really a "NEED" but a "WANTS". Many such cases happen in Taiwan where STUDENTS are too follow blindly nowadays fashion causing them to be in the red. They bought a lot of branded goods to satisfy their vanity. Some even owe RM100K to the bank.
Little saving
Many people nowadays do not save money for their future needs. They think that they can obtain short term loan from the bank easily if they need any financial assistance. Due to this thinking, they will always spend first without considering they are able to pay for the debts in the future. Besides, because of the little savings, they will not have enough money to deal with emergency. Again, credit card become the fatest way to loan money.
Unemployment
UnemploymentUnemployed person normally will depend on their credit cards to pay for their spending as this is the only way for them to survive. If they still spend extravagantly for a long time then they will have accumulated too much debt which they do not have ability to pay for it. Lastly, they will end up by declared bankruptcy.
Pay only the minimum
Some credit card holders will choose to pay part of their debts. This normally will step up their debts because of the interest that imposed on the late payment. Thus, that money paid by them actually is paying for the interest but not for the principal. If thing keep going for long time, then the debt will increase more and more.
PREVENTIONS:
Have a good money management 
A person will need to have a good spending plan to keep track of their bills. This will help them to identify where is their money is going. Actually, it is good to form this habit because it can control their expenses where they only buy thing that they need.
Save moneyAlways save money...This is because cash is the most liquidity asset which it can be used when there is an emergency and future needs. Having enough saving for a rainy day is always a worthwhile investment.You will be more thankful if you have enough money on hand in case of emergency.
Pay on time
Never made late payment to any debt whether is your credit card debts or your car and housing loan. This is because the interest is calculated based on the daily balances. Pay on time will help you to save money on interest. Do not look down on the interest because it may be the main killer in settling your debts.
Self-control
Do not be a shopaholic!!! Buy whenever you needs but not useless things. Limit the "plastic" in your wallet or purse. This will restrain you from being overspend. Spend according to your income but not the fashion.
Choose the right card
Customers must read the terms and conditions carefully especially the fine print before they apply for the credit cards. This is because some financial institutions will imposed extra charges which you would not realized of it. You must understand everything from your interest rates and fees to how to earn rewards from your credit card. This can let you prevent from being charge more for your credit cards.More on this topic: http://www.cardratings.com/howtochoosetherightcreditcard.html
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