Credit card debt is considered as a failure or the weakness of a character. People who spend more are accused of living beyond their means, shopping too much and indulging their life which they can’t afford. It is a true or fact to the large extent. Credit cards make to them to shop easily without planning or thinking about the future debt. If you are not planning your budget, it is incredible to spend more than you need. As per the survey showed that, if you are spending with plastic means that you will spend more and we don’t spend more money in absolute terms. We will pay more for the same item.
People of Americans are embarrassed by their credit card debt, but they don’t talk about it. As per the national survey, 42.4% of Americans having credit card debt and the average balance is a staggering $10,902. According to the research by the National Foundation for Consumer Counseling, 37% of Americans would be more embarrassed to admit the balance on their credit cards than their age or weight.
Countless research showed that, in many cases, individuals are willing to pay double for an item when they can use a credit card. There are many other reasons for credit card debt. Two biggest causes of debt are medical expenses and job loss. When an individual is not prepared financially for a job loss, the debt will start to accumulate quickly. Many individuals still do not have health insurance and a big emergency expense may generate massive medical bills. The people who are having credit card debt are embarrassed and remain silent, it is not a reason to celebrate.
The credit card is an expensive card. Most of the store charge above 20%, irrespective of credit score or points and more than 75% of individuals are paying a higher interest rate than 15%. But we refuse to talk openly about our debt, we make three big mistakes:
1.We are more concerned about our lifestyle which we can’t afford to live, but still we continue to buy clothes in shopping malls and eat food in restaurants and slowly we collect the debt together.
- We end up our life by paying too much debt what we have. The mortgage debt is acceptable debt, people will speak openly about finding the lowest interest rates from the best providers. Refinancing the credit card debt is considered as a sin. And the people are expected to pay higher interest rates as punishment for making bad decisions. The bank makes a profit because of our wrong decisions.
- At last we lose the chance to help others. Because society or friends circle judges purchasing power as a success, we are afraid to enter our family, our relatives and our friends that we are not able to afford something. So we pretend slowly by digging ourselves into deeper debt.
We should not embarrass to talk about credit card debt. Usually, people feel ashamed or uncomfortable to share the debt among their relatives, family, spouse and children. If you share your debt, there are chances of becoming debt free by some ideas or tips by your well wishers.