Credit card debts

Credit card has commonly been used in our life, not only adult but also for students. However, there are many users facing credit card debt problem. Credit card debt results when a client of credit card company purchases an item or service through the card system. Debt accumulates and increases via interest and penalties when the consumer does not pay the company for the money he has spent.

So here goes: Your top 4 causes and preventions of debt!
1. Poor money management:
Most of us didn’t have a monthly spending plan which is essential. Without one we have no idea where our money is going.
Planning is no more difficult than writing down our daily expenses and income and reconciling the two in monthly basis, in order not to exceed the credit limits.

2. Financial illiteracy:
Many people don’t understand how money works and grows, how to save and invest for a rainy day or even why they should balance their checkbook caused them having credit card debts.
Nonetheless, you are responsible for your life and your money. Financial mistakes are increasingly expensive and complicated to resolve. Get educated and get in control!

3. No money communication skills:
This cause mostly refers to couple. Many people didn’t communicate with their spouses or children about financial planning. Some of them even found that their spouses have racked up thousands of dollars in a credit card debt and they had no knowledge about the existence of the card.
Consequently, it is important to communicate or discuss with your spouses and children about the financial goals and spending styles. Sometimes, you also may want to map out a strategy for you both to get what you want. Know what credit accounts you each have and promise each other to be honest about what each other spends.

4. Saving too little or not at all:
People in modern life have less saving especially for the users of credit card. They have no preparation for unexpected expenditures for instance: a job layoff or divorce which will cause immediate financial strain and increase debt.
To avoid unwanted debts, having saving for three to six months of living expenses is essential. No one has ever regretted having a savings pattern.

Look before you leap!! Good Luck!!

1)http://www.ehow.com/how_2038727_avoid-credit-card-debt.html? ref=fuel&utm_source=yahoo&utm_medium=ssp&utm_campaign=yssp_art

2)http://www.top-10-business.com/top/19822-debt-tips2008.html

3)http://www.fool.com/personal-finance/credit/60-second-guide-to-getting-out-of-debt.aspx

The application for pre-paid cash card for consumers

In Malaysia context:

The Touch 'n Go (TnG) smart card is one of the pre-paid cash cards that is used in Malaysia.

The Touch 'n Go systems are designed to process up to 800 vehicles per hour to ease the queue congestion at toll plazas. If it is used together with Smart TAG (a non-stop electronic toll collection system), it will be able to process up to 1,200 vehicles per hour.

A standard TnG card can be purchased at the price of RM20. It consists of RM10 deposit value and RM10 usage amount. The cards may be reloaded from 10 denominations ranging from RM10, RM20, RM50, RM100, RM150, RM200, RM250, RM300, RM400 and RM500.

In Hong Kong:

The Octopus card is a rechargeable stored value (without contract) smart card used to transfer e-payment in online or offline systems in Hong Kong.

Launched in September 1997, it is used to collect fares for the city's mass transit system. It is used for payment at convenience stores, supermarkets, fast-food restaurants, on-street parking meters, and so on.

According to "Octopus Cards Limited"(operator of the Octopus card system), there are more than 16 million cards in circulation, i.e. more than twice the population of Hong Kong. The cards are used by 95 percent of the population of Hong Kong aged 16 to 65, generating over 10 million daily transactions worth a total of about HK$29 billion (US$3.7 billion) a year.

Others:

Other examples such as BPI Express Cash is a MasterCard Electronic prepaid card.

It's used to:

1. pay for purchases in establishments that honor MasterCard and/or MasterCard Electronic.
2. load Globe/Touch Mobile prepaid mobile phones. Your mobile phone number has to be linked/enrolled with your BPI Express Cash card.
3. inquire account balance, withdrawing cash, and for getting a mini statement .