E-Commerce

Credit card is part of a system of payment named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holder’s promise to pay for these goods and services. The issuer of the card grants a line of credit to the consumer from which the user can borrow money for payment to a merchant or as a cash advance to the user. (http://en.wikipedia.org/wiki/Credit_card)

But, if the credit card holder does not have the ability to pay back after purchasing the goods or services that wanted, what consequences will the holder take?

CREDIT CARD DEBT!!

The causes of credit card debts are

1. It's an emergency - Often we go into debt by convincing ourselves that we have an emergency. Certainly there are times when a true emergency arises.
2. We deserve it - After working so hard to save money and spend wisely using credit card. It's like taking one step forward two steps back.
3. It's a bargain - Great deals also shouldn't be used to buy more than we need. Regardless, it's not a great deal if you spend a ton of money on credit card interest paying off the debt over months or even years.
4. It's not much money - It's so easy to spend money we don't have if we spend it in small amounts. The same is true with "small" credit card debt. Enough "small" charges on the card over time can grow into a mountain of debt.
5. The payment is small - Remember, the payment may be small and manageable at first, but buy enough on credit and the payments grow substantially. On top of that, you still have to pay back the borrowed amount with interest.
6. The card rewards make it worth it - We take advantage of many like cash back rewards. If the rewards are tempting you into credit card debt, get a card without rewards or just use your debit card.
7. It's for my business - A business credit card, particularly for small companies, can serve many important roles. But like all credit cards, business cards can also cause you to spend more than you should.

(http://www.doughroller.net/credit-cards/10-lies-credit-card-debt/)

The preventions of credit card debts are

1. Keep the Right Perspective
Consumers need to keep the right perspective, which is you don’t have to be a slave to the credit card company or even to seduction of advertising. This is because all of us can control over our financial health without depending on a credit card.
2. Manage your finances
Starting with a strategy will help keep you on track before you ever even pull out the credit card. First, determining your monthly income and needed expenses and setting up a budget. Next, help keep you on track set goals and put motivators in place which is setting a savings goal with a deadline. Finally, you need to monitor how much you charge on your card in relation to your credit limit.
3. Shop for the Right Card
Get a credit card personalized for your particular situation with no or very low fees and low interest. With the high saturation of the market you’ll find the perfect fit for your wallet.
4. Read the Fine Print
One hour spent reading can save you hours of headaches and hundreds of dollars in the long run. Understanding everything from your interest rate and fees to how to earn rewards and how long of a grace period you have.
5. Know Your Interest Rate
The interest rate you were offered, the interest rate the issuer actually gives you on approval, and check the rate on your monthly statements because it may raises for little or no apparent reason and with little warning.
6. Pay the Balance in Full
Before using a credit card for a purchase, ask yourself, “Do I have the funds to pay for this?”
7. Pay on Time
Never make a late payment to anyone. Because credit card companies can raises your interest rate if you are late.
8. Use it Like Cash, Not a Credit Card
Use your credit card like cash by paying your balance in full each month. This called green factor – with cash you can physically feel how much or how little you have. The point is that you need to be in control of your credit card and spending habits.
9. Limit the Plastic in Your Wallet
Every credit card comes with its own set of terms and conditions. Remember which card has the lowest rate, and save you from making a mistake that will affect your credit history if you only have to keep track of one or two cards.
10. Avoid Extra Expenses
Sometimes it’s the little extra expenses that sneak up on you before you even know it.
11. Cash Advances
Typically cash advances come with a much higher interest rate, fees, and no grace period. The moment you take a cash advance you start paying interest on that balance, which means even if you pay the entire balance in full each month you still pay interest.
12. Extra Products
Credit card companies will try to get you to purchase additional products. The truth of the matter is you usually don’t need it.
13. Early Education
Teach our youngest generation all about money before they even qualify for a credit card. In addition, advertisers more to younger and younger children, so it’s imperative to teach them very early about the lure of money and how to manage finances. The earlier children learn how to manage finances the less likely they will be to fall into credit card and debt problems as an adult.

(http://www.cardratings.com/howtoavoidcreditcarddebt.html)

We all know that, the key to get a good body health begins with a dose of prevention like eat right, exercise regularly, and get a good night’s sleep.
It is same with your financial health. By taking a few steps of prevention today, tomorrow your finances will have a clean bill of health freeing you to live a life of opportunity rather than of difficulty.