If you have credit cards but have not yet let your expenses slip, now is the time to take stock of your situation and make decisions about your financial future. Ask yourself what do you want these credit cards? Do you simply want them to have a source of payment in case of emergency, that they make occasional purchases online or that you are traveling abroad? Or do you intend to go shopping and spend the rest of the year fighting to clear the balance? Most people never want to use up their credit limit and maximize their credit cards, but it is surprisingly easy to do and can be very difficult to cancel.
In many cases, lenders know that giving a credit card amounts to putting someone on the edge of a cliff. Although they do not exactly push you, they put you in a very good position if you just want to make the jump yourself. This can be very unfair and anger against some practices of the credit industry increases. For example, in a recent case in Ireland, a woman's husband was killed after being in debt with unsustainable debt through credit cards. The woman is now seeking legal advice as to whether she can sue the lenders for imprudently allowing her husband to be in a position where he would deem it necessary to kill himself.
Although there has not yet been a judgment of this kind and it is a difficult battle for anyone to blame the lender for his expenses, such cases are very easy to imagine. Most people know that credit card companies have provided them with more than they could reasonably afford to repay. Therefore, it takes self-control and discipline to keep these cards in your wallet and not spend them thoroughly.
But as for many things in life, in terms of credit card debt, prevention is better than cure. One of the best practices or habits you can adopt with respect to credit cards is to set up automatic debit so that you have to repay the full amount each month. This means that even if you have the option of using the card in case of emergency or abroad, you are strongly urged not to let your loans skid.