Credit card debt management is a problem among thousands of people around the world. Despite the warnings from financial experts, these people commit mistakes that put them in compromising situations. How can one fail at credit card management? Here are some of the pitfalls:
The Swipe Lifestyle
If you have a credit card, swiping is life. In just few swipes, you can buy the things and services you want. No need to get cash out of your wallet. In mere seconds, you’ll be a happy shopper. Seems good, right? However, at the end of the month, the reality will sink in. You’ve swiped more than you can chew. The swipe lifestyle has turned into a ‘swipe trap’ and your credit card debt has ballooned. When this happens, you should focus on quick repayment. Don’t use the credit card unless the balance has been settled. In this way, you can avoid the pitfall of uncontrolled swiping.
Lack of Awareness
Many people apply for credit cards because they were driven by marketing impulses. The 0% interest clause attracted them, and they jumped onto the bandwagon right away. Without proper research, you’re treading a dangerous ground. You must read the fine print of your credit card so that you’ll know if the interest rate will scale up after a finite amount of time. While you have no control over credit card policies, you’ll still have a fighting chance if you’re aware of the terms and agreements.
Getting A Second Card
One of the main mistakes of credit card holders is to pour gas onto fire by getting another card. Once the debt kicks in, they tend to go on panic mode and seek for alternatives. A second credit card will only help if you have a debt management strategy in place. Don’t rely on this strategy if you’re driven by impulse. Before getting a second card, seek the opinion of financial experts. You can visit forums and financial channels to widen your knowledge. If others have done the same strategy, you can ask them for guidance.
A credit card debt is not a laughing matter. If unchecked, your credit card will send you reeling from financial blows, unable to recover. You’ll have a miserable life since credit card companies will chase you. So, before getting a credit card, make sure that you can take the responsibility and you have a repayment plan ready. Beware the credit card trap!