These days, Recession has become an important topic of discussion among all the economists.
The recession has already hit the economy of the world and that is the reason why large numbers of people are suffering from the burden of unsecured debts these days.
At this stage majority of people thinks to files for bankruptcy as according to them it is the only solution to help them out in getting rid from all the burden of unsecured debts.
Mostly, the economists are agreeing that mortgage has been huge cause of the global recession in the world.
People had mortgaged their skyscrapers, lands and properties for the sake of obtaining the loan.
When people tired to pay back their loans, the financial institutions like banks and debt settlement companies had to sell their properties.
As a result, it was found that the amount which was going to be obtained by selling the properties was quite less than the actual amount of loan.
Therefore, there was no benefit for the bank to provide this kind of loan to the customers.
A lot of people have lost their jobs on the spot.
And the people who were already working on high wages are now given fewer wages than before.
In this tough system of the economy, the credit cards are not the viable option.
It is a fact that you are giving annual fees of using the credit cards.
So, you always tend to purchase the extra items when you go for shopping of certain items.
At the end of the month, you receive a huge bill at home which you have to pay back.
The amount of the bill which you see is quite painful.
At that time, you realize that you have purchased many extra items which were not required.
The best way to use credit cards is make the right and appropriate use of it, make out the clear difference between the basic and unwanted needs, and instead of swiping plastic money every where try to keep hard cash.
Recession and bankruptcy both have got direct effect, so it is important for all those people who are suffering from the recession should put their best efforts to avoid bankruptcy