Credit Card debts

A credit card allows user to buy things even though they might not have the money to pay for it right away. Credit card debt is the result of credit card misuse. The problem is that people use their credit cards too often and let their debt add up. Then they can only pay back small amounts at a time. This ends up costing a lot of money in finance charges.

Credit Card debt causes

1 . Missing payments
The fastest way to get into credit difficulties is by not repaying the minimum payment required. Missed payments may result in the card being refused at retailers until payment is made. Worse still, this will affect the user’s credit rating.

2 .General overspending
Spending on a credit card is borrowing money. It is a debt and must be repaid at some point. The smart card user only uses the card in place of cash, or to obtain a purchase they can afford, if they can pay off the cost over time.

3.Clients being loyal to credit card providers .User changes his or her credit card provider once the low or interest free period is over. Besides, credit card companies have no loyalty to user .

4.Having too many credit cards .The more credit cards a person has the more likely they are to use them.

5.Expensive payment protection insurance
Some cards offer payment protection insurance, but premiums are often high and the conditions of payout complicated. The best insurance against inability to pay is to pay as much as possible, as regularly as possible, and limit unnecessary spending.

6.Get professional advice
There are four main agencies that offer free, impartial advice for those in debt: the Citizens Advice Bureau, the Consumer Credit Counselling Service, National Debtline, and Payplan. These are non-profit making organisations that guide those in debt through the options available to them. The companies ultimately make money from a card holder’s debt.

FOR EXAMPLE: MASTERCARD.COM /visacard,com/citi.com

Citi ,visa, master card continue to offer variety service to their cardholders via internet service

Stop debt growing
1. Move debts to the lowest interest rate available. Card holder with a good credit rating can always ring and ask the credit card company for a lower rate at any time.

2. Get a copy of your credit report. Your credit report is your bill-paying history. Check for errors and contact merchants if you have questions. You are entitled to a free credit report if you have been turned down for a loan or a credit card.

3.Balance transfer credit card deals give user an excellent chance to shift their balances to one card with low or zero interest rates.

4.To avoid having too many credit cards, a person should only use one or two at a time.

5.Consideration is user balance transfer card's limit. The amount of balances cannot exceed a credit limit of balance transfer credit card. User make sure, the grace period is long enough to pay off the entire balance.

6.Evaluate own financial situation. Start with a list of credit card companies rates. Actually, it may be pretty tough to manage a big amount of credit cards.