Credit Card Debts: Causes and Prevention

Credit card debt results when a client of a credit card company purchases an item or service through the card system. Debt accumulates and increases via interest and penalties when the consumer does not pay the company for the money he or she has spent.

The causes of credit card debts are as follows:

1. Reduced or lost of income. A divorce or unemployment may cause a serious debt. If there is a huge gap between income and expenses, the easiest way to fill in the gap is with credit card debt.

2.Lack of financial planning. People did not make a financial planning for their expenses and income. They usually spent too much, purchase a thing they may not really need it.

3.Poor money management skills. Most of the people cannot well manage equilibrium between expenses and income. They did not plan an income and spending budget, so they will spend over their income.

4.Irresponsibility. People who suffer debt are due to their irresponsibility, they are not concern about their future. They did not carry responsible for their future, using credit card to spent the future money.

Although there are many causes of Credit card debts, there are also have some preventions and safety tips.

1. Make a choice.

Imagine flotsam and jetsam being tossed around in the ocean, drifting aimlessly, destined to land on some unknown sea shore, anywhere, any time. Now imagine a sleek, brand new, high powered, ocean going motor yacht, cutting its way smoothly through the flotsam and jetsam; on board it has all the latest navigational aids, and the owner knows exactly where it is heading and when it is likely to get there.

Which do you choose? Which would you truly prefer? If you chose flotsam and jetsam, then read no more. Make the most of your journey, and you never know, you may end up on a beautiful tropical island somewhere, sometime. But don't count on it; the tides will "decide". If you chose the sleek yacht, then read on.

2. Learn to Relax and Meditate

To be able to establish clear contact with your own mind, you really do need to be able to relax, control your breathing and meditate. These are vital. Do not think of them as some New Age fads. These aids have been around for thousands of years, and have just been suppressed by modern society. Master them, and you have taken a big step towards creating not only a better life, but a life of your choosing. Master them, and not only will you eliminate your credit card debt problems, but go on to apply the same techniques to develop a career or business that you once thought was way beyond you. Who needs to borrow money then?

3. Examine What Caused Your Credit Card Debt Problems

In periods of silent relaxation, focus on what you see as the reasons you have got into debt problems. Be open and receptive, and totally honest. You are accepting reality, what actually happened, not looking for excuses. Do this regularly for a few days, until you feel relaxed about the causes of the debt problem. Remember, you are communicating with your own mind, something which is as natural as can be. This is private, you, your world; nobody else is there. You are establishing control.

Once you have done that, focus on each reason in more depth and for longer. If you think it was because there were so many credit card ads on tv; just think about them, let them roll through your mind. Accept them for what they are; do not cast judgement, feel resentment or anything. This stage is about facts. You need the facts, so you will know what you have to deal with if you are going to eliminate your credit card debt problem. If you thought the cause may have been because your best friend was always buying things you couldn't afford, then focus in just the same way. Again, no judgement, and, importantly, no resentment and no envy. This is about you, not your friend.

4. Address Each Of The Causes

Now that you know, and accept with ease, what your credit card debt problems were caused by, it is time to use your periods of silence, relaxation and meditation to address each of those causes, and eliminate them. It is like preparing to fend off an attack; you are preparing yourself to reject those same influences in the future. The influences that caused your credit card debt will no longer be able to penetrate you.

How you decide to build your defences is up to you. You are training your mind to resist outside influences, to respond in a different way to how you responded previously. The important thing is you will, in future, resist them. For example, credit card advertisements on tv may have pushed you over the edge into credit card debt. Now, you can visualise those same advertisements, and see yourself reacting differently; you may now respond by laughing dismissively at them and saying "anyone who pays those interest rates is crazy" or "they're just like a drug, you need to keep off them". Any little mental tactic that will help you is legitimate. You know yourself; you decide what will work best.

By doing the above you are conditioning yourself to accepting reasons for your debt problem and preparing yourself never to follow the same route again.

5. Tackling The Debt Problem Head On

During your silent relaxation, you can now come to terms with what is necessary to sort out the existing problems. You can train your mind, by repetitive instruction, to, for example:

1. Write down all the debts.
2. Prepare a budget.
3. Seek credit counselling.
4. Keep up all payments on time.
5. Make a plan and stick to it,

until such time as you have been able to eliminate your credit card debt altogether.




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