Credit Card Debt

Credit card debt is a much discussed topic in the commercial and social circles. A giant section of the population has been bit by this bug called  credit card debt. Can;t blame them much; as such, it's simple to fall prey to this bug. 

The main reason behind so plenty of credit card casualties ( credit card debt related casualties) is that plenty of people don't understand the idea of credit cards properly. They treat credit card as free money that is seldom to be returned. Thus all the discipline, which would otherwise have been exercised with spending hard-earned money, goes for a toss. That means people overspend and get in to credit card debt. They keep spending till they reach the credit limit on their credit card. Some people go to the extent of treating that like a game and think about it a defeat (or think about their credit card under utilised) in the event that they don't hit the credit limit speedy . These unnecessary spends lead to a situation where they are unable to payback their credit card bills and finish up paying interest on the amount they owe. This keeps building up their credit card debt and they soon find that the interest part has become a regular feature in their every month expenses and it is there even in the event that they spend nothing on their credit card. That is credit card debt on the prowl. Soon they find that their current credit card can no longer handle their needs and start looking to get another credit card. With the new power of credit, they let themselves loose again and follow a shop till you drop technique. Soon the credit limit of the new credit card is reached and they again default on payments. This is how credit card debt builds. Soon they learn about credit card debt consolidation and other credit card debt elimination techniques. They are speedy to grab such credit card debt reduction techniques, but that's not because they are serious about reducing their credit card debt but because of the pretty low APR offers. As if it were booty, they again get back to building up their credit card debt. All the while they are spoiling their credit card rating and they soon realise that no is prepared to lend them money because of their credit history. They can only receive a secured credit card now (where you first deposit money in to your credit account and then only you get the privilege of spending it (50-100% of it) using their credit card. Credit card debt collection agencies, auction of their goods and bankruptcy is the next thing that hits them and their dream run is blown away in a moment.

The moral of the story is Understand the idea of credit cards and treat credit card debt with all seriousness.