Credit Card Debt : causes and prevention

Credit Card Debt is the unpaid balance on the credit card. This is not the minimum amount due, but is the total balance due on a respective line of credit.
Nowadays, credit card debts are major cause of bankruptcies each year. It is because many people have never realized of its consequences from financial and non financial perspectives when get a new credit card or not enough safety net when there is an incident happen.

There are several causes of credit card debts:

i) Financial Ignorance
Most of them do not have attend any financial training. It's on you to learn to save for a rainy day, as well as manage your money so you can own a house over the longer term.

ii) Poor money management
They do not having a monthly spending plan and not keeping track of your monthly bills makes you unaware of where your money is going.

iii) Less Income, More Expenses
This happens when monthly expenses are not cut down in line with the reduction in income. This obviously leads to a rise in debt. The family is forced to use their credit cards.

iv) Saving little or not at all
This happens when people do not saving their money or saving too little.



Here are some things to help you with debt prevention and management:

i) Budget
A budget allows you the freedom of having peace of mind knowing that all of your bills are paid and the money has been allocated ahead of time for these expenses.

ii) Savings plan
It may help you prevent yourself from getting into debt. Set aside a certain amount each month into a savings account. Saving with a goal in mind motivates many people to stick to their savings plan.

iii) Consolidate your debt into one payment using an unsecured loan
Although the rates will be higher than a secured loan, often it will be lower than your credit card rates and the payment will be lower as well. This will allow you to pay off your debt in a specified time period while paying less interest over the long run.


References:
http://en.wikipedia.org/wiki/Credit_card
http://www.creditcards.com/

Electronic Currency

What Does Electronic Currency Mean? E-currency System is a complete computerized monetary System, proposing to replace the present paper currency system. Initially it is planned to launch e- currency system as an alternative to credit or debit card system. Electronic Funds Transfer (EFT) and direct deposit are examples of electronic money.

Public-key cryptography and digital signatures (both blind and non-blind signatures) make electronic currency possible. It would take too long to go into detail how public-key cryptography and digital signatures work. But the basic gist is that banks and customers would have public-key encryption keys. Public-key encryption keys come in pairs. A private key known only to the owner, and a public key, made available to everyone.

Besides, Electronic currency trading is a method of trading currencies involves converting base currency to a foreign currency at the market exchange rates through an online brokerage account. And Electronic currency traders use analysis based on technical and fundamental indicators to help them forecast the movement of the currency pair being traded. Because currency trading by this method is wholly electronic, execution speeds are extremely fast, allowing the trader to quickly buy and sell currencies to cut losses and take profits at a moment's notice.

Technically electronic or digital money is a representation, or a system of debits and credits, used to exchange value, within another system, or itself as a standalone system, online or offline. Also sometimes the term electronic money is used to refer to the provider itself. A private currency may use gold to provide extra security, such as digital gold currency. Many systems will sell their electronic currency directly to the end user, such as Paypal and WebMoney, but other systems, such as e-gold, sell only through third party digital currency exchangers.

Theoretical developments in the area of decentralized money are underway that may rival traditional, centralized money. Systems of accounting such as Altruistic Economics are emerging that are entirely electronic, and can be more efficient and more realistic because they do not assume a zero-sum transaction model.

References:
1. http://projects.exeter.ac.uk/RDavies/arian/emoney.html
2.http://www.learncurrencytradingonline.com/electronic-currency-trading.html