Credit cards are always a double-edged sword. The function of a credit card is usually useful, especially if you want to get more discounts when using promotions. On the other hand, the use of credit cards can also be a cause of your debt, which can lead you to other debt effects . Here are 3 reasons why you can get into credit card debt.
Frequently Use Credit Cards for Entertainment Funds
The difficulty of rejecting the invitation of friends or family to leave on weekends can usually be your starting point to start using credit cards for entertainment funds. When making transactions to pay for food or other things, credit cards can be very tempting to use. Not to mention that there are now many promotions that have sprung up in restaurants and attractions. Payments using credit cards can usually provide more promotions than cash payments. Unfortunately, the use of an uncontrolled credit card for entertainment fund purposes can backfire and even make someone become trapped in credit card debt.
Often Shop Online Using a Credit Card
Similar to using a credit card for entertainment funds, you can usually get more discounts when shopping online using a credit card. Generally the promotion that applies is an additional discount or payment in installments with a 0% discount for several months. Even though it is interesting because it is without interest, still shopping without control with a credit card can only make someone get into credit card debt. Let’s just say you have 5 items bought in installments of 0%, still you have to provide enough funds to pay for each arrears. If there is not enough funds, of course the opportunity to pay the 0% is useless, right?
Forced to Use Credit Cards for Emergency Conditions
One of the causes of other debt entanglement is being forced to use a credit card to meet emergency conditions. Usually to meet urgent funds it is not uncommon for people to rely on credit cards to bail out costs. Some of these emergency conditions such as accidents, funds for renovating a house or repairing a vehicle, or when the card owner suddenly does not have a job or regular income. The problem is that even though the bank knows that this is an emergency and you are forced to use it even though you know you can’t pay it off, the bank will still provide regular bills every month.
After knowing what are the causes of getting into credit card debt, we hope that you can be more careful in using and knowing where to use your credit card. If indeed you have overused your credit card recently, you just need to make sure that you still have enough funds to pay the bills in the following month. The following is an article from us, How to pay off your credit card so you can be free from debt.