The Role of Budgeting in Avoiding the Snowball Effect of Credit Card Debt
Budgeting plays a crucial role in preventing the snowball effect of credit card debt. By creating a budget, individuals can effectively manage their finances, prioritize expenses, and avoid excessive debt. A budget helps track income, allocate funds for essential needs, savings, and debt repayment. It curbs overspending and discourages reliance on credit cards for discretionary purchases. With a well-planned budget, individuals can maintain financial control, make informed decisions, and break free from the cycle of increasing credit card debt.
