Consciousness of Debt

Many people, who advocate the use credit cards, spouse the benefits and convenience that arises from using them. However, there is another line of thought that opposes using them.. The primary reason is that it creates excessive debt,, which is one of the most serious problems faced by the credit card holders and credit card industry. However, you can’t completely eliminate their use as a result of a few irresponsible people (or even its more than few). That is not the ideal solution for beating excessive credit card debt.

Moreover, you cannot overlook the benefits associated with the use credit cards. The issue of too much debt can be looked at from different angles. First is addressing the excessive credit problem at the provider level and second is the addressing of the examining credit card debt problem at the consumer level. The first method involves increasing awareness of excessive credit card problem and the affect it has on individuals. To a certain extent it’s being done currently. However, there should also be a concerted effort to address this problem on a even deeper level.

This means trying to devise a system to control the potential problem at the issuer level before it affects the consumer. This mechanism should actually be a part of the overall system that limits the amount of credit issued. This system needs to be well planned Studies should be performed, statistics gathered and analyzed and a proper forum formed comprised of both individuals and issuers ands).

Currently, the credit card issuers just seem to be content in bringing out with new products and having customers enroll to them. There is almost no attention paid towards addressing the issues of too much credit. Attending a mandatory conference could potentially be made part of the credit card application process. An additional method of engaging with the problem could be developing a floating mechanism for calculation of applicable credit card limit at the individual level With this approach there could be mechanisms for warning the users of reaching excessive levels or limits of debt This point allows the possibility of imposing early restrictions at noticing the first signs of trouble. Such a system would be help both the consumers and credit card issuers.

On an individual level, the management of the problem of too much debt could include following strict practices usage and buying things that needed at the time. A checklist or questionnaire can be given to individuals to help recognize the early stages of excessive debt.
The problem we encounter today with debt will require a concerted efforts by both sides affected by the issue

MBA with 25 years industry experience

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