credit and overspending

confessions of a shopoholic

what is credit

A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some later date. When a consumer purchases something using a credit card, they are buying on credit (receiving the item at that time, and paying back the credit card company month by month).

what are credit cards

A credit card is issued by a credit card provider, like commonwealth bank, and they are designed to pay for things in shops or online. You can also use credit cards for balance transfers and taking out cash (also known as cash advance or cash withdrawal) from an ATM.When you get a credit card you will be given a credit limit. This is the total amount you have available to spend using the credit card. You should always leave some available credit on your credit card for any interest to be applied.

the struggles of over spending

when you over spend, you kind of hit rock bottom, because most of the time people spend with their credit cards. as we all know credit cards are little plastic evil cards that first become your best friend but then betrays you. credit cards may leave people in a lot of debt leaving them in a sticky situation to paying of such bills, their house loan and obviously paying back the money they borrowed from the bank. while over spending can lead to such troubles, the main cause are credit cards, because as we know at the end of the day you will have to pay back a percentage of interest to the bank provider and if not your card will be declined.

solutions to not being in debt

the information given is based by this movie as the main character has gotten herself in a very predicament situation. the first thing i noticed is how many credit cards she has. i suggest you not having as many credit cards which is as more then you can pay off, that is the main thing that will lead you straight to a debt. if you must you can have 1 credit card which is more manageable and have instead saving cards (debit cards) which consists of your and on your money.