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What is credit card? Credit card is any card that may be used repeatedly to borrow money or buy products and services on credit. Credit Card is issued by banks, savings and loans, retail stores, and other businesses. Nowadays, credit card debts are major cause of bankruptcies each year. It is because perspectives when get a new credit card or not

The following are some point of causes and prevention for credit card debts:
Causes of credit card debts

a)Poor money management

Poor money management is one of the reasons that debts occur on many families. It is because they unaware of their spending limits. Some of them do not realize their spending on the items that is worthless. Thus, it leads on rising in debts by using credit cards unwisely.

b) Banking on a windfall

Spending wisely is advisable because using credit card refers spending tomorrow money.

c) Unemployment

When the main breadwinner of the household unemployed, credit card can be use temporary for maintaining current lifestyle. Therefore, a rise in debt happens

Prevention of credit card debts
a) Making an budget

People have to create clear budget and stick on it such as monthly bills, food, clothes, entertainment and miscellaneous expenses which will prevent from overspending and fall under deeper debt load.

b) Self control and discipline

One of the best practices is to have a direct set up so that able to pay back the full amount for each month. Thus, overspending will not occur.

c) Cut up your cards so that you are not tempted to use them

Pick the one with the lowest interest rate and cut up the rest. The one you keep should be deemed as an ‘emergency card.”

The following are some references link:
1.http://www.mozdex.com/prevent-credit-card-debt/
2.http://ezinearticles.com/?Understanding-Credit-Card-Debt-Problems&id=1225936
3.http://www.fastweb.com/fastweb/resources/articles/index/102925
4.http://www.bankrate.com/brm/news/debt/debt_manage_2004/top-10-causes.asp