Learn why Americans charge up so much debt

Debt from credit cards and other debts that are not secured such as personal loans, have come to be a big problem for the majority of families in America . So many people have become to accustomed to just utilizing their plastic to get whatever it is they want, whenever they want, without really having the cash to pay for it. Below I will list the top reasons that people wind up becoming so indebted with credit card debt.

1. Impulsive Buying and Poor Spending Habits!

Impulse buying demonstrates a lack of willpower. People will simply come across something in a store and ring it on their credit card, because they just can’t wait to get whatever item it is they bought, with no regard as to whether they actually have the money for it then or not. Credit cards feed into impulse buying that is what the cards are there for to satisfy our need for instant gratification. You know there is a motto “patience is a virtue” if some individuals kept to that standard they would not be in so much debt.

Poor spending behaviors run along the same line as impulse buying. Some individuals just pamper themselves far to much in life. A good example might be, someone might go to a full service restaurant, and instead of buying a chicken sandwich and chips, they get the filet mignons, the pre meal appetizer or two, the drink special, and the ice cream special. And of course charge it on their plastic. Don’t take me out of context every once in a while splurging isn’t bad, but for some individuals it’s an everyday occurance. And these undisciplined spending behaviors can lead up to a mountain range of debt in a rather fast time period.

My Advice: Upon the next time you find yourself at a store any type of store, and you are intending to make a purchase with your plastic. Look down at the items you are going to charge and think to one’s self ‘Are these items wants or needs?’ If you see yourself buying an item 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 credit card, to come back and buy that item for yourself without utilizing your card. The key here is to differentiate between wants and needs, your groceries are a need, your toothpaste is a need, the new DVD system is a want, the brand new pair of sneakers are a want. A tune up for your vehicle is a need, a supercharger for your vehicle is a want.

2. Obtaining Too Many Credit Cards!

This is the next largest contributor to individuals getting into heavy debt issues. People simply just can’t say no to the credit card offers they receive in the mail. Debtors get solicited in the mail saying your pre-approved and your credit limit is five thousand. For a lot of people this is too much to take on and they will wholeheartedly accept every offer and almost instantly use them.

My advice:Ignore these offers, they are only going to hurt you! These offers are not necessary. You must think of every one of these card solicitations you receive in the mail as a giant financial time bomb waiting to explode. The only way to cut it off is by tossing them right into the trash. Learn to refuse the new credit offers you do not need them, this cannot be stressed loudly enough.

3. Cash Advances!

This is an extremely big factor in people racking up debt. It is just so easy to go to the automatic teller machine and use cash against your card. However this becomes addictive to individuals and becomes a big reason why they pile up so much debt.

My Advice: Steer clear of cash advances. This basically is almost the same as just purchasing on your card, you are still going to be paying interest and rack up debt.

Steve Bis is a debt analyst with the US Consumer Advocate, which practices debt settlement.

- Steve Bis

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