Credit card is a system of payment named after the small plastic card issued to users of the system. In the case of credit cards, the issuer lends money to the consumer (or the user) to be paid later to the merchant. It allows the consumer to 'revolve' their balance, at the cost of having interest charged. However, it can lead to a big amount of debts or bankruptcy for the users or consumers.
The users might just keep on swapping the credit card unlimited because they don't have to pay the money on the spot. They didn't see where the money flows so they won't feel anything as long as they still have cash in their wallet. Some of them may hold 3 or 4 credit cards at the same time too. When there is due date, those users only pay the interest and the minimum amount of principal; they never fully pay for the amount. Finally, the poor money management and their self-attitudes will lead them to the pool of liabilities.
Besides that, the users might have to pay a big amount for medical expenses, deposits for buying cars or houses,thus they have to pay by using credit cards an owe money to the bank. Sometimes, the credit card debts may be caused by the internet threats such as phishing, malicious software, hacking and more. Due to the personal information, credit card number and the password have been stolen; the owners are liable for the bills which have been misused under their account.
The credit card owners should have a well-managed spending plan so that they won’t be wasting too much on unneccesary things and they can save money at the same time. Their attitudes have to be changed and they have to be self-disciplined too. In addition, credit cards should be cut up such as one person can only hold one card and the credit limit should be kept low. The credit card holders can learn the ways to detect the internet threats from security firms and report to them if they are being attacked.
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