How to Avoid Credit Card Debt Essay

There is a widespread concern about rising levels of debt. Debt can become disastrous for those who live alone or those families who are already having problems with supporting their family. The people who might be struck by debt, they might have trouble recovering. Debt can cause Americans to lose their homes and stability they need to feed, and shelter their families. Although debt comes upon us Americans quickly, people can see debt as terrible thing to be stuck with. It has many disadvantages that can devastate to people.

When using credit cards, practicing self-discipline and common sense will allow an individual to use the cards as an advantage (Lynott, 2008). Advantageous tips are to limit the number of credit cards to two for personal use and two for business, charge only what you can pay off at the end of the month because that is interest-free, carry cash to pay for small purchases because they add up quickly on a credit card, become knowledgeable about the interest and additional fees and penalties, and focus on items that are needed and not just wanted (Lynott, 2008).

There are both pros and cons to spending with credit. A consumer must be responsible for their spending and plan ahead for the future. Many people are quickly swept with debt a short period after receiving a credit card. Other consumers are wise enough to control their spending and limit their purchases.

Currently, I don’t have a credit card. All of my payments are made in cash of with my debit card. In the last lecture we learned that it is a good idea to get a credit card young so the credit can start building. Mr. Klassen says that he uses his card for the necessities that he has to buy anyway such as gas and groceries. I would like to implement that in my own spending habits once I get a credit card. I would keep my balances low by being responsible with how I use my card. In addition, I will start out with only one credit card. There is a lot of temptation to open up many cards with different companies, but with one card it is easier to keep track of your

“In a nutshell, the system is geared to keep you in debt” Kevin Trudeau writes in his book “Debt Cures” At the time of publishing his book (2007) The average American consumer had more than $8,000 in credit card debt. Today the average American household owes double the amount at $16,000 in credit card debt. As NerdWallet puts it “Debt is American as apple pie.” Being the 4th highest type of debt in America at $750 billion, just below mortgage, auto debt and student loan debt. Credit card debt is one typical type of debt Americans have to deal with because of the “aggressive practices by the entire lending industry” Trudeau says. Kevin

Debt, the financial fall in which you intend to save yourself from. Navigating a way forward without falling into any pitfalls, is worth trying. The world of credit is a maze, waiting to be solved. Only a few has passed and many have failed. Debt is a “liability or obligation to pay or render something”(dictionary). In order to figure out this credit maze, we must first have an understanding of what credit is. The only way to get into this debt is from not being aware of credit. Credit is “the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future”(dictionary). This credit maze has many different situations that you may encounter with such as student loans. This student debt

In regard to saving money, I have found that one of the simplest deals by taking back control over the credit card companies. Faster than expected, credit card debt accumulates quickly. Each purchase on a credit card is not limited to the price on the sales tag, when the entire purchase price is unpaid on the subsequent bill. Be realistic with your purchases. When living on a cash budget, discuss how much “ money is ‘available’ ” for spending as well as how often that amount is withdrawn (Do You Know Where Your Money Is). Avoid signing up for another credit cards when contemplating how to handle expenses. While it may appear that paying off one credit card with another would make it more manageable, it is only compounding the problem. In order to determine spending allowance to pay off debt, I recommend to construct an excel document of the expenses for each month.

Interest rates of all bad debts incurred by debtors become progressively more high to the idea an individual's payment isn't even enough to pay just the interest. Specific resort to numerous different credit card debt solutions programs and personal credit card debt counseling is merely one of your many possible selections. But, thinking about opt for debts counseling?

In the 1800’s I believe it was nearly impossible for people to spend more than they financial could because loans were not as easily accessible. In this modern age a common form of a loan that allows almost anyone to spend beyond their financial capabilities is a credit card. Credit cards are pieces of plastic that allow you to buy products and services with the money of the credit card company. However, this money isn’t given to you for free. All the money you spend must be paid back to the credit card company at the end of each month. This is where a potential problem could be created. If people spend more money than they can pay back they acquire debt. The acquired debt then accrues interest when you don’t pay what you owe. This causes the debtor to generate more debt every time a payment is unpaid.

U.S. consumers remain addicted to credit. Consumer debt continues to rise to record levels and a significant number of households have lost control of their finances. Credit cards can be a useful financial tool when used appropriately. However, research clearly indicates that consumers are not using credit cards wisely and consumers do not understand the terms and conditions of the credit card contract. Adding to this public dilemma, the practices of numerous credit card issuers have been described as predatory. The Credit CARD Accountability Responsibility and Disclosure Act of 2009, also known as the Credit CARD Act of 2009, is the first major reform of the credit card industry since the Truth in Lending Act of 1968. The Credit CARD Act of

Debt isn’t a bad thing unless as you mentioned, we spend it on unnecessary things. I found that I can use my debt in a positive way, like with a cash back reward credit card, or a card that provides flight miles. I

In the world of personal finances, credit cards play an important roles in lives of many people. Sometimes, it's out of choice while other times it happens out of necessity. Regardless of why it happens, the numbers surrounding credit card debt are worthy of scrutiny in order to determine whether having or using credit cards is a sound financial decision.

“The average American owns 3.5 credit cards and $15,799 in credit card debt… totaling consumer debt of $2.43 trillion in the USA alone.” (Beckner). Debt forces many people into depression and worrying lives. People struggle to discover happiness through financing goods, but struggle even more to find a way out of debt. Through consumerism, people lose their finances in department stores, car dealerships, and much more. Most of the possessions people buy with credit cards become impractical within a few months. The void they search for is never really filled. Consumerism is just a way to get the economy going, without thinking of a person’s individual finance

Do not live a life that you cannot handle, spend within your means. Be honest with yourself, if you can’t afford something, don’t buy it! Affordability is much more than the amount of money in your bank account, it also is how long it will take for the money you spent to be back in your account. Think of your finances as a long term process, not a short term fix. This is also why you should limit your credit card usage. If you rack up your credit card and lose your sole source of income,

Students do not have the education needed to use credit cards responsibly. Nellie Mae (August 2007) states