Most of us know a credit card is part of a system of payment which is a small plastic card issued to users to system. It is a card entitling its holder to buy goods or services based on the holder’s promise to pay for these goods and services. Credit card debt is an example of unsecured consumer debt accessed through credit card. 
Debt result when the client of the credit card company purchases an item or service. Debt increase via interest and penalties when the client does not able to pay the money she or he spent. For example, if a user had
RM1000 transaction and repaid it in full within the payment period, there would be no interest charge. However, even RM1.00 of the total amount remained unpaid; interest would be charged on the RM1000 from the date of purchase until the payment is received. The result of no paying the debt on time will charge a late payment penalty and report the late payment to credit rating agencies. The late payment penalty itself increases the amount of debt the consumer.
There are some prevention methods:
1. To make a budget
It is very important to have plan so that you will know exactly where all your funds going. Many people believe that a budget will be constricting and not allow them any freedom. Really the opposite is true. A budget allows you the freedom of having peace of mind knowing that all of your bills are paid and the money has been allocated ahead of time for these expenses.
2. Have a plan
This is a key to help you prevent yourself to getting into debt. Set a amount into your bank each month for savings. At the end, they will be able to purchase a desire abject without going with a debt.
3. Set a goal and target
Immediately stop spending for any unnecessary expenses and cut expenses where you can. When you going shopping, buy the things you really need. Don’t buy a lot of things that u no use at the end. It will cause you spent more and owe more.
For more information, please visit the following web-sites:
1. http://www.mozdex.com/prevent-credit-card-debt/
2.http://www.buzzle.com/articles/debt-prevention-and-management-go-hand-in-hand-with-a-budget.html
Debt result when the client of the credit card company purchases an item or service. Debt increase via interest and penalties when the client does not able to pay the money she or he spent. For example, if a user had
RM1000 transaction and repaid it in full within the payment period, there would be no interest charge. However, even RM1.00 of the total amount remained unpaid; interest would be charged on the RM1000 from the date of purchase until the payment is received. The result of no paying the debt on time will charge a late payment penalty and report the late payment to credit rating agencies. The late payment penalty itself increases the amount of debt the consumer.
There are some prevention methods:
1. To make a budget
It is very important to have plan so that you will know exactly where all your funds going. Many people believe that a budget will be constricting and not allow them any freedom. Really the opposite is true. A budget allows you the freedom of having peace of mind knowing that all of your bills are paid and the money has been allocated ahead of time for these expenses.
2. Have a plan
This is a key to help you prevent yourself to getting into debt. Set a amount into your bank each month for savings. At the end, they will be able to purchase a desire abject without going with a debt.
3. Set a goal and target
Immediately stop spending for any unnecessary expenses and cut expenses where you can. When you going shopping, buy the things you really need. Don’t buy a lot of things that u no use at the end. It will cause you spent more and owe more.
For more information, please visit the following web-sites:
1. http://www.mozdex.com/prevent-credit-card-debt/
2.http://www.buzzle.com/articles/debt-prevention-and-management-go-hand-in-hand-with-a-budget.html
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