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Credit cards have revolutionised the way we make payments. At the same time, many of us are equally addicted to them all the time. We do not realise the importance of using a credit card wisely, which eventually results in a debt trap.
Most card issuers and banks offer tempting promotional offers, reward programmes, privileges and perks to attract customers. Hence, customers are tempted to apply for more cards without realising the hidden risks and challenges associated with them. Credit card addiction can bring down your credit score and spoil your credit history.
While many of us live in denial about our lifestyle and credit card spends, it is very crucial to assess and address this problem in its initial phase. If you already have huge debts, you will need to take charge of your financial spends and accept full responsibility for your financial mismanagement.
The following factors will determine if you are addicted to your plastic:
There could be multiple reasons associated with your credit card addiction. It is important to analyse the root cause of it. You may be addicted to the plastic because of your excessive shopping habits. The perks, privileges and promotional offers offered by credit cards may often tempt you to apply for more, which eventually results in huge debts. Therefore, you will need to first understand the causes of the debt before planning to address it.
Once you get a complete understanding of your financial problems, the next step lies in addressing it effectively. In order to stay away from debt traps, it is always a best practice to implement the steps needed to clear your debts and stay consistent with it. What follows below is a list of steps that can help you curb the credit card addiction: