Credit card debt has become a huge 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. Below, I’m going to list the top three reasons why people end up so inundated with credit card debt.
1. Bad spending habits and impulse purchases
Impulse buying shows a lack of self-control. People will just see something in a store and load it onto their card, because they just can’t wait to own whatever item they’ve bought, regardless of whether they have the money to buy it or not. Credit cards fuel impulse buying, 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 indebted.
Wasteful clothing goes along the same lines as impulse buying. Some people just enjoy life too much. For example, someone might go to a restaurant and instead of ordering a hamburger and fries for dinner, they get the 20 oz steak, appetizer, drink special, and dessert special. And of course charge it to your credit card. Now, I’m not saying that splurging from time to time is bad, but for some people it’s a way of everyday life.
My advice: The next time you are in a store, any kind of store, and you go to make a purchase with your credit card. Look at the items you’re about to buy and think, “Do I really need these things?” If you find yourself buying something that’s more of a want than a real need, just put it back on the shelf and promise yourself that when you have “real money,” not a plastic card, you’ll go back and buy that item for yourself without using your card. .
2. Having too many credit cards!
This is the next big contributor to people getting into debt trouble. People just can’t turn down the credit card offers they receive. They get these cards in the mail saying you pre-approved them and your credit line is 5k. For some people this is too much to handle and they will accept all cards and charge on them.
My advice: Throw these offers away! 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 directly in the trash.
3. Cash advances!
This is a very important factor for people to accumulate debt. It just 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 rack up so much debt.
My advice: don’t use cash advances. Basically, this is almost the same as simply charging your card, you will still pay interest and accumulate debt.