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Getting into credit card debt can be an extremely stressful for any individual. And it hurts even more when you get into debt even after you have done everything to prevent yourself from getting into such a situation. And this can happen to anyone given the prevailing economic climate of the planet. We shall discuss how not to get into credit card debt and what to do if one finds oneself in such a position in the following passages.

The major reason that people get into credit card debt is because they are not able to manage their finances judiciously. When the expenditure overtakes the income, that`?s when one falls into a financial mess. It is always important to realize that saving is a continuous process irrespective of how much you earn and it is important to realize this as early as possible in ones career.

Another cause for concern is that people start hoarding credit cards just because they are being offered a good deal. A lot of banks are vying against each other to woo as many customers as possible so as to increase their dividends. In the current economic crisis scenario, the banks are ready to offer big rewards for valuable customers. When you start getting credit cards because of the rewards and not because of a need, you will end up falling into the trap.

When you have a lot of credit accounts, it will be very difficult for you to control your spending. You will have to check the outstanding balance on each of your credit accounts and send out separate checks for each of them. This can be a very time consuming and frustrating Endeavour. And if you fail to make even one payment, you will end up being penalized by the bank in the form of an increased interest rate for that particular credit account. And if you are a defaulter, the bank is at liberty to increase the interest rate to the highest possible rate for that account. And once the interest rates have been increased, you cannot do much to reduce it back to the normal rate on the same account. The fact that you defaulted on a payment will stay on your record for a period of eight years.

You can also get into credit card debt if your identity is stolen. Always protect your password and be wary of every move you make before and after and during the process of swiping your card. With rapid development in technology, thieves are finding new ways to copy magnetic strips, reprogram cards, change passwords, record passwords etc. you can never be too careful.

If you ever do get into credit card debt, try to pay it off as soon as possible. The more you delay it, the longer drawn the process of reinventing yourself. You will need to try and renegotiate the terms or consolidate the debt with the help of an external agency. The faster you do this, the faster your credit history can be set right and everything can go back to normal.