Perhaps you’ve just noticed have been stuck in credit card debt problem, after a day and night being chased by debt collectors. Do you still able and strong to face the terror of credit card debt collectors are known for certain foreign? Or you do not have a problem with a credit card, but instead greatly helped it. If further investigation, the motive a person using a credit card can be classified into three groups.

The first group is the use of credit cards to buy goods and services that are necessary and already budgeted. Hence they always paid all bills before or at maturity. This group can be said able to control the use of credit cards and fully understand the risks and dangers of credit card usage.

The second group is those who consider credit cards as a substitute means to pay in the shop. So easy to use credit cards without realizing not enough money but rather to see whether the credit card limit is adequate or not. These types cannot see a material difference between the purchases compared to cash installment. Surely this group include those who not sensitive to interest rate movements thus become easy targets for credit card issuers. Only with the lure of shopping facilities and promotions such as the merchant discount, free movie passes, free airport lounge, easy credit limit increase, collecting shopping points, exchange airline tickets with prizes or rewards points, or via telephone transactions can make the credit card holder use card. From this group, credit card issuers get annual fee if worn, debt interest, and fees from the merchant.

The third group is those who consider credit cards as extra money than cash they had. Since the beginning, it will be used as a tool for debt. This group is very high risk into financial problems because of lack of ability to pay. They often do not care how much actual real interest rate on debt credit card. This group is potential consumers to record bad debts if the central bank raised the interest rate anchor, which encourages an increase in interest rate markets, including consumptive credit.