Nowadays, cost of living has becoming high, which indirectly have created various problems too many peoples. Mainly, people will place emergency bills such as car repairs, home repairs and others onto credit card and then hopefully can pay back the debts. The cause of debts is because people
have low income but high expenses. Today, many people are spending more than their income where expenses level is higher than income. Through poor money management also causes debts where they do not have monthly spending plan and not keeping track with monthly bills. By this, will leads to spending in useless things. Besides, for underemployment peoples are people not getting enough working hours at job, where not reaching the working hours requirements.
To prevent from credit card debts, one of the prevention is not ignoring primary debts because this should always be the main priority over other commitments. The best way is by listing all the income received monthly and monthly bills that need to be pay. By this there is no excuse to spend money on not important things. However, the need of having a saving plan is important. Where by setting aside a certain amount each month into saving account and setting a goal in mind can be motivates.
2 comments:
Do you think credit card is easier apply than before? Will this cause credit card debt increase?
I think apply for credit card is difficult compare with last few year, because of increasing credit card debts constantly.
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