Excessive credit card debt affects many people today. This is not a good thing, as you know. Some people use this statistic to advocate for the elimination of all credit cards, which frankly will not occur. If you suffer this then you have to use or develop your personal financial knowledge to alleviate your situation.
I do not recommend removing credit cards from the community. Credit cards are too useful for people and they can be very important in the right situation.
There are two aspects for excessive credit card debt problems, the industry itself and individuals. There are various responses that are suitable for each aspect.
Industry and the media apply the first answer at the industrial level, namely increasing public awareness of the problem. But this is not enough. There should be a method or mechanism or system, just call what you will do, bite this problem from the start. I don’t believe this is impossible, or even difficult to apply, but I don’t see much done about it.
There are case studies and available statistics show how and why individuals go beyond their cards. The credit card company already has this data very well about how the card operates. They know who is excessive on their cards because they lend money to them. And because of the digital and mechanical system, credit card companies have all the data they need, at least, starting from problems.
Once they know how, and more importantly, why do individuals enter the credit card debt that is excessive, they can start stopping it. I admit there might be a spacious and smooth reason but dirty statistics, as I have said, available now. This is a problem for current credit card companies, but quickly becomes a problem for the community too. The way the current state, there will be a critical point where the government will take over and only tell the credit card company what to do, and then enforce these rules. It won’t be any point for companies that complain at this time, the problem is there now and they know about it. The ball is in their current court.
Another aspect of the problem is individual. Every individual gets himself into this problem and is up to him to get out of him. If you are one of these people, you must begin to realize exactly what has happened. Check your bank’s report regularly. Make sure you know where your money goes.
That is the first thing. Next is to make yourself a budget, preferably on the spreadsheet. Don’t be discouraged if your first budget is incorrect. Most people don’t do it correctly first. But you have to fix your original budget with every new data piece that you find. So your budget will quickly be very surprising.