The Three Most Common Reasons for Credit Card and Personal Debt
Divorce -- this is a difficult one for people to avoid, but it makes sense. Typically what happens is that a couple is living a life that they can afford based on their income(s). However, when the divorce happens, you suddenly (in most cases) need two houses. That means two mortgages/rents where there was previously one. And one person is probably keeping the residence the couple had when they were together. That person has the full rent/mortgage to pay and now the other person has to pay for their new place. It's also very likely that the income is the same for both people. Thus your expenses have increased but your income has remained the same, so you end up in debt.Medical Expenses -- it is becoming increasingly common for Americans to not have health insurance. And in many cases this is simply unavoidable. Jobs that used to provide insurance no longer do. Other jobs that still offer insurance may not offer their employees enough hours to qualify for the insurance. The net result of this is that individuals are on the hook for their medical expenses. When something goes wrong, individuals have to pay for it. Most f the time, the only way to pay these expenses is with credit cards. The medical expense itself may be expensive enough. But the double digit interest rate that accrues against the debt is that much more painful -- especially when the medical situation prevents one from working.Living beyond your means -- the third reason is the most preventable, but the one reason that people just don't like to talk about. Many people who are in debt are in that position because they live beyond their means. In an effort to keep up with the Joneses or just because we're susceptible to the 3,000 plus marketing messages that we're hit with each day, Americans spend... and spend... and spend... whether we can afford it or not. If this is why you are in debt, you have to stop. You must learn to limit your spending and to live within your means. If you don't, you will never get out of the debt hole.Some reasons for incurring debt are unavoidable (divorce, medical expenses), while others are fully within our control (deciding to live within our means). It's difficult to accept that we are often the very reason for our debt, but to get out of debt and regain control of our financial freedom, we have to come to terms with this.
Related Tags: credit card, credit card debt, credit cards, credit card bills, consumer debt, eliminate debt
Michael M Thomas is an Internet Marketer with over 7 years of Fortune 500 management experience. Did you find these opinions on AdWords Confessions to be helpful? If so, you can learn a lot more about AdWords Confessions at my blog. Your Article Search Directory : Find in Articles
Recent articles in this category:
- Debt Settlement Programs In 2010 - Learn How To Get Your Debt Bought Out
Are you (interested in|searching for} some great information on debt settlement programs?Are you sea - Many Ways In Which A Debt Settlement Company Can Help You
Have a look at the latest figures of total personal debt in the United Kingdom. As per the reports, - Debt Consolidation Services Whats Best For You
A debt consolidation service is really a loan that is applied for to pay off pre-existing debt. Prec - Debt Consolidation Advice
If you don't know how to repay your various debts, and find your creditors chasing you for the payme - The Guide To Debt Solutions
By the end of 2009, the number of personal insolvencies that had been filed in courtrooms around Eng - What Debt Solutions Do You Have Available?
For people who find themselves in a difficult financial situation there are a number of debt solutio - Government Debt Management Help And Advice
No matter how good your money management skills are, there might come a time when you'll find yourse - Paradise Found With Debt Consolidation
Paradise Lost-Paradise Found with Debt ConsolidationIf your life and the life or your family is not - How To Consolidate Credit Card Debt?
Have you ever wondered if what you know about Consolidate Credit Card Debt is accurate? Consider the - A Very Simple Approach To Debt Reduction That Works.
Debt Reduction seems to have become fashionable and its not considered a dirty word anymore. The eco
Most viewed articles in this category:
- Help is Around With Consolidation Loans
If piling debts is a cause of concern for you, then read on to find the key to solve your problems. - Debt Consolidation Loans: it is Never Too Late to Mend your Ways
The fulfilment of desires in our lives is like mirage; the more you chase them, the more they seem t - Debt Consolidation To Avoid Further Damage To Your Credit!
So if you are beginning to miss payments or pay late and you fear your credit will get ruined, it's - Reduce Credit Card Debt by Managing Debt
Reducing your credit card debt is not easy, and requires planning and discipline. We all know that - Consolidate Debt Through a Bad Credit Mortgage
How can anything called a "bad" credit mortgage be considered good? You would be surprised that it - Debt Consolidation Loans - Bring your Finances Back on the Track
Debt consolidation loans enable one to pay off all his debts in one go. It is an option to merge all - Take Advantage of Credit Card Debt Counseling and Get Rid of Your Debt
We all know how credit card debt can creep up on us. The credit card companies are only too happy t - Time Share Your Way Into Debt
Cancun, do you want to live here for a couple weeks a year? Hey if you want to learn how come attend - Roll your Debts Into a Single Manageable Debt With the Debt Consolidation Loans
Are you deep into debt but clueless on how to get out of it? Are you losing your nerves keeping trac - Debt Consolidation - Is it Right for Me?
Many people search for a way to bring life back into their finances and relieve their ever growing