While some people may be prone to credit card abuse, the majority of people do not set out to amass a load of credit card debt To understand what causes the problem, we need to look at the reasons why people are tempted to charge things they cannot afford

When a person has to buy something and doesn't have the cash to pay for it, there are a few options available The first is to borrow the money If there is a willing lender, then this is easy to do If not, there are other options The other options are to:

Put it on plastic

Ask for a discount

Put it off until the next pay period

Do without

The first, and most tempting, option is to put it on plastic This has the advantage of not having to save up the money beforehand and of not having to carry anything home It also has the advantage of being able to pay off the debt in instalments Because it is easy, it is also very tempting

The second option is to ask for a discount If you are buying something expensive, it may be possible to negotiate a better deal by promising to pay in cash or not asking for a rebate If you are buying furniture or a computer, for example, the salesperson may be able to knock a few dollars off the price if you pay cash

The third option is to put it off until the next pay period This is where the problem starts Paydays don't come quickly enough and it takes a long time to save up enough money This is when the monthly interest charge comes into play While a person may feel that they can afford the monthly payment, the interest charge is so high that the total amount paid over time is much more than if the item had been paid for in one lump sum

The last option is to do without This is a good idea, but people rarely do it It takes discipline to hold off on buying things and to save up the cash to pay for them This is even more difficult when the person is trying to lead a normal life and function in society, to keep up appearances and to buy all the things that other people have, such as clothes, furniture, and electronic equipment

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