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Why Do People Accumulate So Much Credit Card Debt?

By Adem Selita

Why Do People Accumulate So Much Credit Card Debt?

People accumulate a lot of credit card debt for many reasons. It can be a whole host of issues but more often than not, it’s not with bad intentions. It’s rare that someone wakes up one morning and says I want to accrue a massive amount of credit card debt. Most consumers get into debt because they are either facing financial troubles, they need to charge medical expenses, they have just moved, or have had some major life changes in which they needed to make due but were only able to use credit cards as a backup plan.

The problem is credit cards are not the best backup plan to have. But when life happens and consumers are stuck in between a rock and a hard place, they're often times left with little choice. And it's usually not a process that occurs overnight. Smaller purchases overtime can lead to very large balances. Balances can easily balloon from $2,000 to $8,000 over the span of however many months or years, if you are only making minimums and are still charging the cards.

When consumers try their best to do what they can with the limited finances they have available, things can spiral out of control for anyone. It happens a lot more often than you think. It doesn’t matter if it’s a bull market, a bear market or a recession. In America, consumers carry credit card debt and if one large expense occurs, it can often be the thing that breaks the camel’s back.

We’re human. We all make mistakes. When life occurs, it can happen all at once. What is most important is how we chose to handle the situation we are given. We can either move forward to the best of our abilities or we could harp on our past mistakes and beat ourselves up. Beating ourselves up is never the right answer.

Medical Equipment

Some people have to purchase thousands of dollars of medical equipment in order to grant ease to a sick loved one. Others need to protect their loved one with this life saving equipment and do their best to help grant them comfort in this world while they can. Others have to pay for out of pocket surgeries and other medical related expenses that can have sky high costs without insurance. Whatever the case, things can happen that are out of our control and this is especially the case with medical debt.

Moving Expenses

Some consumers have big moving expenses! Many don’t actually realize just how much it’ll cost them to move until they actually have to do so. This is why it’s so important to keep track of and maintain a budget so that your finances don't run away from you. In order to stay on track with budgeting feel free to use our budget calculator. No matter the case, moving can be very expensive. Even if you do the moving on your own and opt for help from friends or family along the way.

Accumulation Overtime

If you don't pay attention to your monthly budget, debt can simply accumulate overtime as a natural process. That’s why it’s important we get a handle on our budgets and make sure that they don’t run away from us. Many people that accumulate debt over time, usually have unexpected expenses that occur and are just unable to pay down their balance each month. After a few months of carrying a balance, they can become stuck making minimums payments. And, in that scenario, things can tend to feel really hopeless. There's always a path forward no matter how bleak things might seem and it’s important to not let our mental state negatively affect us.

Death In The Family

What happens to credit card debt when you die is a question that can come up. Many consumers have debt as a result of a death in the family. Funeral expenses can be very expensive and unfortunately they can sometimes be unexpected. If you need to purchase a plot of land for the deceased, a funeral could run up to thousands of dollars. It’s difficult to manage everyday expenses as it is, never mind having to worry about unexpected expenses like a funeral and burial. But as a consumer you need to try your best to work with what you have and remember that we can only do what is within our ability.

Schooling/Educational Costs

The cost of an education has never been higher in America. With how things are looking it doesn’t appear to be slowing down. Even if you qualify for student loans, if you don't have supplementary income that suffices your cost to live, it's very easy to get into credit card debt. It happens more often than you’d think. Students are constantly on the go and schedules that are all over the place, make it difficult to keep up financially. Many have to resort to eating at home and saving money isn’t always the easiest thing to do if you lack organizational skills.

With the way interest rates are staying at their current place, it’s becoming harder and harder to maintain and even harder to reduce current debt levels. Don't believe me? Ask the U.S. government which now owes a whopping $37 trillion dollars in debt (approximately).

This isn’t a new process either. The more thangs change the more things stay the same. As interest rates increase and inflations affects the cost of living, debt becomes more expensive to service. Inflation has now outpaced wage growth for a very long time in America. And we are trying our best but we're mostly moving forward with the same money and rising expenses. No matter which way you flip it, this is hard for anyone to do never mind middle class Americans.

Options?

There are many options available to consumers to eliminate debt. The debt relief company has a wonderful option to help consumers eliminate their debt within 2-4 years.

Otherwise consumers can utilize the debt avalanche method or the debt snowball method. Consumers can also simply put extra money towards their balances each month, but this tends to be the least effective and least organized way to get out of debt. It’s usually the worst option available for consumers to pay down debt simply because there’s no real strategy involved with just paying extra. If you don’t put pen to paper or at least contemplate a plan to become debt free, what you’re doing might not really be considered a strategy.

There can be a whole host of reasons consumers get into debt. It’s usually not something they want to happen but usually some unavoidable expenses that take them for a loop. Unfortunately, as time moves forward the trend seems to be in the favor of consumers accumulating more and more credit card debt.

Whatever the reason is, at the end of the day, there are solutions to help get you out of debt. Consumers don’t have to live with debt forever, there is hope.

With our debt relief program, you can save approximately 30% off what you owe on the principal and get out of debt in 2-4 years. This way you won’t have to worry about how much debt you’ve accumulated and formulate a plan to help you get out of it,

If you have $30,000 in credit card debt our program should save you approximately $9,000 (give or take) off the principal amount with fees and costs included. So, if you have a substantial amount of credit card debt we are definitely able to save you a lot of money. The debt relief company could be a financial lifeline for those who already have passed the accumulation stage of debt and are now looking to enter into the elimination part of the process.

It’s tough to cast blame on consumers who for the most part meant well. Sometimes there isn’t a single reason why they go into debt, these things can tend to happen. What matters is that eventually the matter gets addressed sooner rather than later. The longer you wait to find a solution the more it will cost you in the long term. Interest is not fun to play around with and the longer we wait to eliminate it, the more it will cost to pay off.

With a little elbow grease anything is possible. The more you strive for your goals the better you'll be. Something will eventually give and go your way. Although it might not feel like it at first, something’s got to give and when things finally go your way, you’ll be appreciative you took those first steps.