What To Do With Credit Card Debt

The efficacy of current credit card regulations is still widely debatable

. Although one can see the logic behind these regulations, credit card misuse or overuse is still rampant; especially as card companies themselves (as well as many merchants) don't want to lose out on profits. A couple of aspects within the structure of credit card promotions ensure these businesses' almost inescapable grip on consumers: merchants are pressured to entice card users into spending with attractive financing schemes, while this environment of "easy" credit leads to many people going into debt that affects their budgets and savings such as their nest eggs.

While fairly new regulations that theoretically protect consumers from getting into debt were introduced in the country in 2009, the transparency initiated by these regulations don't seem to have a considerable effect overall. While merchants, card issuers, and (some say) the government place a lot of pressure on the average Joe to pull out his card and charge purchases, consumers are spending more than they should. This leads to a question of how seniors and other consumers prone to credit card debt can stop using cards for loans to ultimately live a debt-free life?

To solve this financial issue, the consumer needs to own up to the fact that he or she will have to live frugally, and only purchase what is necessary - this can help alleviate a significant amount of debt. Aside from curbing credit card use, people also need to establish a central fund with which to finance large purchases and expenses, with the fund helping eliminate budget crises by permitting the methodic scheduling and planning of necessary expenses and purchases.

After you've owned up to your tendency to overspend with credit cards, you should then try to start eliminating consumer debt by setting up a savings account specifically for large purchases or expenses. To know more about how you can fund this savings account, talk to your investment planner or financial advisor.

by: Carina Smith

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