Causes and Effect.
Who or what to be blame with vast amount of credit card debt. BY : Akyiaa Adomako-Mensah.
To understand the nature of debt, it is important to understand the debt cycle. It start when one begin to out spend your income for many different reasons. One know it's wrong but do any way, telling yourself "it's just this once". Individual too often delay bringing expenses in line with a reduction in income for alot of reasons and they let debt fill in the gap. Mostly they have no spending plan when they lose their jobs or take a pay cut. Individuals do not no how money works and how it grows, How to invest or save for a rainy day or why they should balance their check book. You are mostly responsible for your own financial life, so we make mistakes that are increasely expensive and complicated to resolve. Some people lack self control to discipline their purchases, after all discipline is not as fun as spending. Others worry about how they look to their neighbors or wants to compete with them as well as they know they can't afford. The stores and the pursuasive advertisement put us more in debt, I agree. Call it America's new entertainment,Gambling. It can be additive, hard to stop and the casinos have loans available. Casinos are places you can mortage your house while intoxicated and have it to be legal. We let ourselves to be decived by the credit card offers and promotions of the temporary low interest rate. However if you do not liqudated the debt at the time of promotion, it begins to engage in a formal interest usually higher than expect. Almost all stores have a credit card, and give certain percentage off goods if you have their cards , so people jump on it even though they don't need it. Credit card and the lending companies have alot of sneaky tactics to make some keep paying additional charges even when you pay off your bill. The late fees , over the limit fees and the interest charges are upsetting. Most companies...
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