Increasing consumerism has given rise to the phenomenon of over
expenditure by even an average earner and in turn has resulted in more
and more people reeling under debt burden. The problem escalates because
people care little about key aspects of personal finance. One can in
fact benefit much if finance availing and management aspects of personal
finance are especially taken care of.
Both
finance availing and management of personal finance goes hand in hand.
Main sources of personal finance are credit cards and personal loan.
Credit cards have become most popular and easier way of both taking
finance and making expenditure. Every item purchased goes to the
cardholder's bill. Lack of cash often encourages consumers to swipe
credit card more. This only results in debt accumulation. To minimize
credit card debts, take precautions. It would save you lot of money if
you use credit card only when there is no other alternative to it
because if the dues are not cleared in time the credit card issuing
company slaps high penalties. This worsens the debt problem. Also, when
applying for credit card, make sure you pick up the company that charges
the lowest possible interest rate. Your interest outgo must remain
lower so that you save enough for other expenses and rainy days.