Credit card services provide us a chance to spend excessively without any control. It also opens a pathway for the users to get into financial troubles that may take years to repay the debts.
Causes of consumer overspent:
A poor money management, which led to excessive spending and loss of self control, will cause a serious financial debt when consumer can’t monitor the money their are spending by using a credit card.
Preventions on overspending:
Many people do not know how and do not understand the meaning of “save and invest for a rainy day”. The simplest way to avoid unwanted debts is to prepare for unexpected expenditures by saving 3 to 6 months of living expenses.
To determine monthly income, needed expenses and aware of the interest rate offered. Consumers are being advised to use debit card which has a limited amount of money in it to prevent excessive spending.
Besides that, signing up for automatic payment feature on credit card to ensure payment is being made every month also reduces the risk of incurring late payment charges.
Last but not least, consumers should monitor the amount of charges imposed on the credit card in relation to credit limit, which will smooth out the repayment process. and helps to control consumers’ spending.
Useful links:
http://soundmoneytips.com/article/41938-use-virtual-credit-cards
http://www.mortgageguideuk.co.uk/blog/frugality/7-ways-to-avoid-overspending/
http://www.thedigeratilife.com/blog/index.php/2007/01/25/stop-overspending-now-14-ways-to-conquer-binge-buying/
http://articles.moneycentral.msn.com/SavingandDebt/FindDealsOnline/5ReasonsYouOverspendOnline.aspx
Causes of consumer overspent:
Basically is the psychological reason where at the moment that consumer are tempted to spend money with a credit card, and there's nothing to remind that have a budget.
A poor money management, which led to excessive spending and loss of self control, will cause a serious financial debt when consumer can’t monitor the money their are spending by using a credit card.
Preventions on overspending:
Many people do not know how and do not understand the meaning of “save and invest for a rainy day”. The simplest way to avoid unwanted debts is to prepare for unexpected expenditures by saving 3 to 6 months of living expenses.
To determine monthly income, needed expenses and aware of the interest rate offered. Consumers are being advised to use debit card which has a limited amount of money in it to prevent excessive spending.
Besides that, signing up for automatic payment feature on credit card to ensure payment is being made every month also reduces the risk of incurring late payment charges.
Last but not least, consumers should monitor the amount of charges imposed on the credit card in relation to credit limit, which will smooth out the repayment process. and helps to control consumers’ spending.
Useful links:
http://soundmoneytips.com/article/41938-use-virtual-credit-cards
http://www.mortgageguideuk.co.uk/blog/frugality/7-ways-to-avoid-overspending/
http://www.thedigeratilife.com/blog/index.php/2007/01/25/stop-overspending-now-14-ways-to-conquer-binge-buying/
http://articles.moneycentral.msn.com/SavingandDebt/FindDealsOnline/5ReasonsYouOverspendOnline.aspx
2 comments:
I should be more aware of credit card next time. so that no unwanted overspend
exactly, credit card is more convenient but we should nt overspend it.
Tq.
~have a good day ahead~
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