Steve Bis

Below is a video about how big the problem has become of consumer debt here in America. This video ties hand and hand with the article below the video, which covers the top three reasons people end up staring at a large mountain of debt in their name. The video is pretty eye opening to the practices these credit card companies use to greedily take as much money out of the consumer’s pocket as possible.

Credit card debt and other unsecured debts have become a major problem for the majority of families in America . People have become to accustomed to just using their plastic to get whatever then want, whenever they want, without truly having the money to pay for it. Below I am going to list the top three reasons that people end up becoming so swamped with credit card debt.

1. Impulse Buying and Poor Spending Habits!

Impulse buying shows lack of self-control. People will simply see something in a store and charge it on their card, because they just can't wait to own whatever item it is they bought, regardless of whether they have the money for it then or not. Credit cards feed into impulse buying that is what the cards are there for to satisfy out need for instant gratification. You know there is a saying "patience is a virtue" if some people adopted that principle they would not be in so much debt.

Poor spending habits run along the same line as impulse buying. Some people just indulge way to much in life. For example someone might goto a restaurant and instead of getting a chicken sandwich and fries, they get the filet mignons, the appetizer or two, the drink special, and the dessert special. And of course charge it on their plastic. Now I am not saying that to splurge every once in a while is bad, but for some people it is a everyday way of life. And these poor spending habits can lead up to a mountain of debt very fast.

My Advice: Next time you are at a store, any kind of store, and you are going to make a purchase with your credit card. Look down at the items you are about to purchase and think to myself "Do I really need these things?". If you find yourself buying something that is more of a want then a true need then simply put it back on the shelf, and promise yourself when you have "real money" not a plastic card, to return and purchase that item for yourself without using your card. The key here is to distinguish between wants and needs, your food is a need, your toothpaste is a need, the brand new James Bond flick is a want, the brand new pair of shoes are a want. A tune up for your car is a need, a supercharger for your car is a want.

2. Having Too Many Credit Cards!

This is the next major contributor to people getting into debt problems. People simply just cannot refuse the credit card offers they receive. They get these cards in the mail saying your pre-approved and your line of credit is 5k. For some people this is too much to handle and they will accept every card graciously and promptly charge on them.

My advice: Just throw these offers away! You do not need them. Think of each one of these card offers you receive in the mail as a little financial time bomb waiting to explode. The only way to diffuse them is by throwing them right into the trash. Learn to resist the new credit applications you do not need them, this cannot be stressed enough.

3. Cash Advances!

This is a very big factor in people racking up debt. It seems just all to convenient to go to the ATM and take out cash against your card. However this becomes addictive to people and becomes a huge reason why they accumulate so much debt.

My Advice: Do not use cash advances. This essentially is almost the same as just charging on your card, you are still going to be paying interest and racking up debt.

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