Excessive credit card debt affects a lot of people nowadays. This is not a good thing, as you well know. Some people use this statistic to advocate the elimination of all credit cards, which frankly will not happen. If you suffer from this then you must use or develop your personal finance knowledge to alleviate your situation.I do not advocate eliminating credit cards from society. Credit cards are just too useful for people and they can be essential in the right circumstances.There are two aspects to the problem of excessive credit card debt, the industry itself and the individual. There are different responses appropriate for each aspect.The industry and media are implementing the first answer at the industry level, that is to increase the public’s awareness of the problem. But this is not enough. There should be a method or mechanism or system, call it what you will, of nipping this problem in the bud. I do not believe this is impossible, or even difficult to implement, but I do not see much being done about it.
There are case studies and statistics already available showing how and why individuals overspend on their cards. The credit card companies already have this data by the very nature of how the cards operate. They know who is overspending on their cards because they loan them the money. And because the system is digital and mechanised, the credit card companies have all the data they require to, at least, make a start on the problem.Once they know how, and more importantly, why individuals get into excessive credit card debt they can make a start on stopping it. I admit there may be extensive and subtle reasons but the gross statistics are, as I already said, available now. This is a problem for the credit card companies at present, but it is rapidly becoming a problem for society as well. The way things are at the moment, there will be a tipping point where the government will take over and simply tell the credit card companies what to do, and then enforce these rules. It will be no use for the companies complaining at this point, the problem is there now and they know about it. The ball is in their court at the moment.The other aspect of the problem is the individual. Each individual gets him or herself into this problem and it is up to him or her to get out of it. If you are one of these individuals you must start to realize exactly what has been happening. Check your bank statements regularly. Make sure you know where your money is going.
That is the first thing. The next is to make yourself a budget, preferably on a spreadsheet. Do not be discouraged if your first budget is not correct. The vast majority of people do not get it right first time. But you must correct your original budget with each piece of new data you find out. That way your budget will quickly become very startlingly accurate.Now you must stick to your budget. Increase your personal finance knowledge to encompass your new circumstances and act appropriately. There is information available all over the Internet, and in your public library that will help you. You must find it and use it.