why do people get into credit card debt
Credit card debt is a major problem in today's society. People get roped into a credit card when the credit card companies advertise all of the good things they have to offer including free interest etc. One of the long-time selling points for credit card Companies has been the fact that they are easily monitored, meaning it is much easier to see what you have spent and where you have spent your money with the card. Any time a person can legally spend more money than they actually have, a problem is bound to occur! Credit cards are accepted worldwide and are normally tied in with various reward systems such as points for travel, dining etc. All of these perks including the fact that they are extremely convenient make using them extremely simple, which can lead some people to debt, as they become unmanageable. Credit cards differ from other payment methods in their monthly billing cycles. They are incredibly useful to those who are smart with their spending, as they can make various, instant payments, and pay it off each billing cycle. However, with the ease of using the credit card, it can be easy to charge more than you can pay in one lump sum if you are not careful with your finances!
Some people depend on there credit cards when taking off work for medical reasons etc. If you cannot pay the payment in one lump sum whenever your billing cycle is up, then it will accumulate interest and this is what "kills" most people. The interest on credit cards is much higher than that of most other credit institutions. Some credit card interest rates can be as high as 20 to 30%. This is how credit card debt starts and this is how the Companies make their money! Having multiple credit cards is another cause of debt. With multiple cards it makes managing your finances every month confusing, when one card should be making it less confusing. Making sure all of the cards are accounted for along with other monthly bills can be extremely time consuming and almost impossible to keep track of. It would be ideal to use a credit card if you knew you could pay what you charged on the card every billing cycle in full, thus not getting charged any interest fees. The problem is that many people in today's society live paycheck to paycheck and look at credit cards as an easy way to pay bills and buy things that they want.
Those who are smart about their purchases and use their cards moderately are the ones who actually benefit from them. Those who apply for every one they are offered, max them out and never pay them are the ones who should have stayed away in the first place. When credit card debt is an issue there are places that can help. There are many credit card consolidation companies specializing in the kind debt consolidation bad credit requires. They are there to help, but of course, they come with their own fees as well. Another option is to transfer what you owe to a credit card with a lower interest rate and to be sure to pay the bill each billing cycle.
Posted By Law Office of Simon Goldenberg, PLLC Millions of Americans each year will either struggle to keep their finances positive or fall into debt. Each person who goes into debt will do so for his or her own unique reasons, of course, but many cases are linked directly to credit cards and other forms of credit lines. What is it about credit cards that can lead so many people into difficult financial situations, or even? Our Lawyers Negotiate Credit Card Debt Settlements Call Today: (888) 301-0584 Here s a few reasons why people commonly fall into credit card debt: Decrease in income: Habits are hard to break, including spending habits.
People who rely on credit cards for purchases big and small can start to do so instinctually, not really paying close attention to the finances actually behind the swipe of a card. If a person s income is reduced for any reason, it does not guarantee that they will reduce their expenditures to match. This imbalance of earning and spending can pile up debt faster than most expect. No budget: Talk to just about any young adult and ask them how they are budgeting their money and they will probably admit that they are not. There are no courses in high school leading to adulthood about how to budget your finances responsibly, and so the thought to do so understandably never crosses most peoples minds. Without a budget, there s no telling how close you are to credit card debt until it actually happens. Minimal savings: If you open an account with a bank, you will likely be offered both a checking account and a savings account. As the name implies, your savings account is supposed to hold all the money you save, as in whatever you did not need to spend that pay cycle.
Only a small amount of people will actually maintain a savings account, allowing it to grow month over month. Banking on luck: Lastly, some people who get into credit card debt make the mistake of assuming that everything will be fine since everything has been fine up to that point. It is hard to imagine falling on hard times or going through a bankruptcy, so some might assume it just cannot happen to them. No matter the reasons you have fallen into credit-related debt, you can find supportive legal counsel at the Law Office of Simon Goldenberg, PLLC. Our New York and New Jersey has been helping people find solutions to serious debt crises for years and has earned selection to Super Lawyers and a flawless 10. 0 Superb Avvo rating. Get more information about our law firm and your own choices to find debt relief by and requesting an with our team. Results vary; prior results do not guarantee similar performance. Simon Goldenberg is licensed to practice law in NY and NJ. This page does not contain any legal advice.
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