Credit cards are becoming famous among the masses with the development of financial sector of our country. Credit card primarily is a plastic card which allows its owner to shop within the limit of its card. They are issued from the bank by a credit card issuer. If the credit card holder has purchased something, he or she signs a receipt which indicates the record. Credit cards are now accepted everywhere, in hotels and even for shopping. VISA and MASTERCARD are used in all the countries worldwide. Credit cards save you from a lot of hassle as you don’t have to carry the money around. However, anyone carrying a credit card is open to the risk of having credit card debt. Credit card debt occurs when a card holder does not pay the money in time he or she has spent. As a result, the company will charge him with a penalty and a report will be sent to the credit agencies.
Credit cards entered the money market in the 1920’s in United States. However, the references of the use of credit cards go back to 1890’s. It started when the oil companies along with other firms started to issue them to their clients. In earlier days, credit cards were only limited to the merchants and their customers. Now credit cards are used worldwide. The issuer of the first credit card was J. Biggins who worked in the Flatbush National Bank, New York.
All the people carrying credit cards are well aware that by the end of the month they have to pay the bill of their spending. People who are not cautious in their spending end up with a credit card debt. The only way you can avoid this debt is to avoid the mistake of using credit cards for costly accessories. As things once bought cannot be returned, so one should be careful while shopping. Once you are in debt, you should at once stop using your credit card so that the interest incurred on the debt also stops. Otherwise, it keeps on adding load to your debt. Another relief is that you should transfer your balance to a card with lower rates. It will definitely help you pay the debt off or at least make it easier for you. Consolidation loan is another way to pay the debt. It is very simple to take and is more like a lending hand. It is the act of combining your loans and liabilities into a simple loan and it will lower the interest rate as well.
Tips and comments
Many people end up in credit card debt as they do not even have the idea what they are getting themselves into. So it’s very important to keep a check on your credit cards spending and bills to avoid debt. You should also be very careful and never lend your credit card to anyone else. This can land you in trouble. Your card might get stolen and a lot of expensive stuff might be purchased as a result. There are obviously ways out of debt but it is better if you try to avoid getting into a debt to begin with.
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