‘Credit card debt’ is a much discussed topic in the commercial and social circles. A massive section of the people have been bit by this bug called ‘credit card debt’. Can’t blame them much; as such, it’s pretty easy to fall prey to this bug.

The main reason behind so many credit card casualties (rather credit card debt related casualties ) is that many folks do not understand the idea of cards correctly. They treat credit card as free money that is never to be returned. Therefore all of the discipline, which might otherwise have been exercised with spending hard earned money, goes for a toss. That implies folk overspend and get into bank card debts. They keep spending until they reach the borrowing limit on their card. Some people go to the extent of treating that like a game and consider it a defeat (or consider their credit card under utilised) if they don’t hit the credit limit quick enough. These unnecessary spends result in a situation where they are not able to payback their credit card bills and end up paying interest on the amount they owe. This keeps building up their credit card debt and they soon find that the interest component has become a regular feature in their monthly expenses and it is there even if 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’ routine. Soon the credit limit of the new credit card is reached too and they again default on payments. This is how credit card debt builds. Shortly they find out more about card debts consolidation and other card debts elimination strategies. They are quick 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 attractive low APR offers. As if it were booty, they again get back to building up their credit card debt. All of the while they’re spoiling their Mastercard rating and they shortly realize that nobody is prepared to loan them cash due to their credit report. They can only get a secured Visa card now ( where you first deposit money into your credit account and then only you get the concession of spending it ( 50-100% of it ) using their Visa 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 story’s point - ‘Understand the idea of cards and treat credit card debt with all seriousness’.

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