Many people suggest the use of credit cards, in light of the benefits and conveniences associated with the cards. But, there’s a different school of thought or group that is strongly against credit cards. The reason for this is “excess Credit Card Debt’, which is among the biggest problems that credit card users face and the credit industry.
It’s not possible to end the credit card industry simply because of some reckless (or perhaps less responsible) individuals. It’s not a method to reduce the burden of financial debt on credit cards. Beyond that it is impossible to ignore the advantages of credit cards.
The issue of high credit card debt is examined from two perspectives. The first is overcoming the issue of credit card debt that is excessive at the level of industry and the second is addressing the issue of credit card debt that is excessive at an individual level, specifically at the level of the credit card holder. The first step is to increase awareness of the issue of credit card debt that is excessive to the general population. It is becoming less and less happening at present.
However, there needs to be a determination to tackle this credit card debt issue on an even deeper level. This is by attempting to create ways to deal with the issue (excessive credit card debt) right from the beginning. The mechanism should be part of the whole system. Much thought needs to be poured into the design of the mechanism. The case studies must be studied with statistics and forums created (with representatives from the holders of credit cards and credit card companies).
In the present the credit card companies appear to only be engaged in the process of releasing new products and then registering customers to purchase these products. There isn’t much attention given to the issue of debt from credit cards in the fullest sense. A mandatory course about the causes behind overspent credit card debt might be a component of the process of applying for credit cards.
Another approach to overcoming the issue of excessive credit card debt could be through designing a credit limit calculation system that is applicable to an individual’s level and does not include a standard or product-based credit limit.
It could be a method to proactive inform consumers of the possibility of having the excessive debt on their credit cards (based on the use of credit cards) or the imposing of restrictions early to be aware of the initial signs that point to an excessive amount of credit card debt at an individual basis, and the treatment of debt issues. The definition of excessive credit card debt will be a result of following the most effective guidelines (about the use of credit cards as well as avoidance of the excessive debt on credit cards) by the person in this regard. A list of questions could be provided to people to help them identify the early signs of overspending on credit cards.
The issue of credit card debt that is excessive can definitely be overcome gathering serious thoughts on an overall level, and implementing the discipline of each individual.