Credit card debt has become a big problem in America. People have gotten used to using their plastic to get what they want, when they want, without actually having the money to pay for it. Next, I am going to list the top three reasons why people end up so overwhelmed by credit card debt.
1. Bad spending habits and impulsive purchases
Impulsive buying shows lack of self-control. People will just see something in a store and load it onto their card, because they can’t wait to own the item they bought, regardless of whether they have the money for it or not. Credit cards feed on impulse purchases, that’s what cards are for to satisfy our need for instant gratification. You know there is a saying “patience is a virtue” if some people adopted that principle they would not be so in debt.
Bad spending habits go along the same lines as impulsive buying. Some people simply enjoy many things in life. For example, someone might go to a restaurant and instead of buying a burger and fries for dinner, they get the 20 oz porterhouse, appetizer, specialty drink, and specialty dessert. And, of course, charge it to your credit card. Now, I’m not saying that splurging every now and then is bad, but for some people it is an everyday way of life.
My advice: The next time you are in a store, in any type of store, you are going to make a purchase with your credit card. Look at the items you are about to buy and think “Do I really need these things?” If you find yourself buying something that is more of a wish than a true necessity, simply put it back on the shelf and promise that when you have “real money,” not a plastic card, you will return it and buy it unused. your card.
2. Having too many credit cards!
This is the next big contributor to getting people into debt trouble. People simply cannot decline the credit card offers they receive. They receive these cards in the mail saying their pre-approval and credit line is 5k. For some people, this is too much to handle and they will accept all the cards and charge them.
My advice: Get rid of these deals! You don’t need them. Think of each of these card offers you receive in the mail as a little financial time bomb waiting to explode. The only way to spread them is to throw them straight in the trash.
3. Cash advances!
This is a very important factor in people who accumulate debt. It seems too convenient to go to the ATM and withdraw cash against your card. However, this becomes addictive for people and becomes a big reason why they accumulate so much debt.
My advice: don’t use cash advances. Basically, this is almost the same as simply loading your card, you will continue to pay interest and accumulate debt.