27th May 2016 Cat: Defining Disordered Behavior with Comments Off

Excessive credit card debt

Most people advocate the case of credit cards, quoting the benefits and
convenience that arises from them. However, there is another
group/line-of-thought that strongly opposes credit cards. The reason
being ‘Excessive Credit Card Debt’, which is one of the most serious
problems faced by the credit card holders and credit card industry.
However, you can’t pull the shutters on the credit card industry just
because of a few irresponsible people (or even if it’s more than few).
That is not a solution for beating excessive credit card debt. Moreover,
you can’t overlook the benefits associated with the credit cards.

calico-4533__180The issue of excessive credit card debt can be looked at from 2 angles.
First is addressing of the excessive credit card debt problem at the
industry level and second is the addressing of the excessive credit card
debt problem at the individual’s level i.e. at the credit card holder
level. The first method involves increasing awareness of the excessive
credit card debt problem to the masses. This is more or less being done
currently too. However, there should also be an effort to tackle this
problem of excessive credit card debt at an even deeper level. This
means trying to devise a mechanism to nip the problem (of excessive
credit card debt) in the bud. This mechanism should actually be a part
of the overall system. A lot of thought needs to go into devising such a
mechanism. Case studies should be taken up, statistics gathered and a
proper forum formed (with representatives from the credit card holders
and from the credit card suppliers). As of now, the credit card
suppliers just seem to be engaged in coming out with new products and
getting customers enrolled to those products. There is little attention
paid towards addressing the problem of excessive credit card debt in the
real sense. Something like attending mandatory seminars on the root
causes of excessive credit card debt could be made part of the credit
card application process. Another way of dealing with the problem of
excessive credit card debt could be: developing a system for calculation
of applicable credit card limit at the individual level i.e. no
standard/product-based credit limits. Then there could be mechanisms for
proactively warning the users about excessive credit card debt (based on
their credit card usage) or even imposition of early restrictions on
noticing the first signs that lead to excessive credit card debt At the
individual’s level, the treatment of the problem of excessive credit
card debt would include following of best practices (on credit card
usage and avoidance of excessive credit card debt) by the individuals
themselves. A checklist or a set of questions could be provided to
individuals for recognising the first signs of excessive credit card
debt.

So, the problem of excessive credit card debt can surely be dealt with
by putting together some serious thinking at a broader level together
with discipline at the individual’s level.


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