As banks and financial institutions market new credit card facilities, consumers are always on the lookout for better deals to consolidate debt. In the wake of the 2008 financial crisis however, it is clear that consumers need to take more responsibility for their debts to prevent a continuing cycle.
Credit card debt contributes to the external debt of many developed countries. External debt in Australia alone stands at over 150% of its economic output. While the effects of the 2008 financial crisis appear to be showing signs of recovery, globally, there are still massive amounts of debt and massive opportunities for consumers to undertake even more debt. This cycle needs to slow down for the long term benefit of all investors. As regulatory authorities are unable to put the brakes on credit card issuers, and credit card issuers are running a business, it is up to the consumers to take control.
Consumers should be aware of all the credit card features which credit cards can lead to such as increasing debt through excessively high interest rates, fees and possibly even a bad credit rating if debt levels become unmanageable. There is a bigger need for credit card debt management now than ever.
