5 Proven Ways to Keep Credit Card Debt from Snowballing into a Crisis
In today’s fast-paced world, credit cards have emerged as an indispensable component of our financial lives, offering unparalleled convenience and the potential to build credit profiles. However, misuse and mismanagement of credit cards have become a concerning global trend, leading to financial distress for many individuals.
Recently, alarming figures have underscored the gravity of this issue. The total credit card outstanding in India in the current financial year has increased significantly, at 29.6 per cent, compared to last year, according to Reserve Bank of India (RBI) data. Additionally, TransUnion reported a staggering $930.6 billion in total US credit card debt in 2022, marking an 18.5% increase from 2021. To avert such potential crises, it is imperative for people to adopt proven methods and maintain a disciplined approach towards credit card usage and debt management.
In this article, we will discuss some methods to help individuals take control of their credit card debt responsibly.
One of the primary reasons behind credit card debt escalation is reckless and impulsive spending. The initial move towards responsible financial control involves setting up a well-thought-out budget. Start by evaluating your income and necessary expenditures, such as housing, utilities, groceries, and transportation.
Dedicate a reasonable portion of your income to discretionary expenses while setting aside some funds for emergencies and paying off debts. By following this diligently, you will steer clear of impulsive buying and ensure the ability to manage your monthly credit card balance without difficulty.
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When dealing with several credit cards carrying
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