Posted by: layyeng | July 5, 2009

Credit Card Debts: Causes and Preventions


Credit card debt is accumulated via the interest charged and penalties when the customer does not make payment to the credit card company. There are many causes for the credit card debt, such as:

≈ Spend expenses more than income.

  • Due to the attractive advertisement published, people are hardly to control themselves from spending. During economic downturn, unemployment rate is increasing, this will be a huge impact to the household as they are forced to use their credit card for groceries and other utilities.

≈ Lack of finance management plan

  • Educations like saving or investing personal finances should be taught in school since it is important for everyone to know that having enough savings for a rainy day is always a worthwhile investment.

≈ Hold too many credit carddebtors

  • Many people believe that having more credit cards in the wallet is an essential sign of prosperity.

≈ Attraction from credit card companiesattraction of advertisement

  • Credit card companies have encouraged customer to spend more money by giving them rewards or privileges.

Tips to take those crucial steps to financial freedom:

√ Reduce spending.

  • If the credit card that you holding is charging a high interest, transfer the balance to ones with a lower annual percentage rate.

√  Increase your income

  • If your current salary is not enough to cover the payments on your debt, get a second job. Even a few hours a week can make a huge difference.

√  Debt counseling.

  • Go through a counseling session with financial experts before you choose to go for any particular kind of credit card debt service.


  1. I do believe if you have budget control and use your credit cards wisely, you will enjoy the benefits. By using credit cards, you can earn the reward points to redeem free gifts. Sometimes you will be giving privilege to get discount for purchased at selected shopping outlet or dining at selected restaurants. Besides, you may get 0% installment plan for items purchased. So, spend your money wisely with credit cards!

  2. Credit cards can be one of the most useful tools in our daily life nowaday. If you have the discipline to pay of your balance at the end of each month and not spend more than you have (your income). You’ll basically get the credit card service for free!

  3. I’m not agree with your this statements “the more credit card the more likely the person drives toward the credit card debts”. It’s because different credit card have different privilege. For example, now PBB credit card have a promotion using their credit card can get 8% cash back, so we can get this 8% “discount” when we purchase groceries and necessary thing at supermarket. If we paid cash we don’t have this “discount”. Some more HLB credit card also have promotion “Kids eat for free”, if paid cash kids eat must paid also. Hold more credit card enjoy more benefits.

    • It’s true,that are the benefit you may enjoy by using credit card. No doubt, it’ll be good if you are afford to pay for all the credit card that you owned. What if you spend more than what you own, you’ll properly end up with more and more debt. When you are spending by using a credit card, you don’t know about the amount that you have spend. You just buy whatever you like. By the end of the month, the bank statement is received, then only you’ll notice how much you have spend. By then, the only things you can do is to clear your debts.

  4. there stil need a lot of improvement in order to secure card holder….>.<""

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