Common reasons people end up with credit card debt
Credit card debt is one of the biggest debt problems people can have. Given that most credit systems are designed to keep users in debt, it’s no wonder people fall into the same cycle of spending money they don’t have.
However, just because a lot of people have credit card debt doesn’t make the situation normal. If you are in debt, you need to adjust your spending habits in order to catch up on your payments. To help you with that, here are common reasons people end up with credit card debt.
The most obvious reason for being in debt is spending more than what they earn. This can be due to rising commodity prices or a low income or a combination of both. Even if you’re over by just $50 for a month, the fact that commodity prices don’t go down or if your salary doesn’t go up, monthly debt will pile up drastically.
Another reason people are in debt is unplanned purchases. Because it’s so convenient to simply swipe our cards to buy a product at zero interest doesn’t mean we should. And because these purchases are unplanned, it’s easy to lose track of them and not account for them when you do monthly breakdowns.
Lastly, having too many cards and not know which one is already over its limit is a sure-fire way to getting penalty fees. If you use one credit card to pay off another credit card, your debt will simply go nowhere.
Hey there! My name is Michelle Marquez, and I’m an aspiring accountant. I’m currently an accounting major at UCLA. My goal after getting my degree is to become a Certified Public Accountant and help as many people as I can manage their finances better. For more debt-related articles, visit this website.
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Image source: blog.credit.com
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Image source: credit.com
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Another reason people are in debt is unplanned purchases. Because it’s so convenient to simply swipe our cards to buy a product at zero interest doesn’t mean we should. And because these purchases are unplanned, it’s easy to lose track of them and not account for them when you do monthly breakdowns.
Lastly, having too many cards and not know which one is already over its limit is a sure-fire way to getting penalty fees. If you use one credit card to pay off another credit card, your debt will simply go nowhere.
Hey there! My name is Michelle Marquez, and I’m an aspiring accountant. I’m currently an accounting major at UCLA. My goal after getting my degree is to become a Certified Public Accountant and help as many people as I can manage their finances better. For more debt-related articles, visit this website.
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