Credit cards can be useful, and that’s why most adults in the U.S. have at least one. Nonetheless, credit cards can also cause serious financial difficulties. The current amount of credit card debt in the U.S. is thought to stand at around $1.4 trillion. That’s a lot of debt.
When debt becomes overwhelming, people are often left with no option but to file for bankruptcy. Why is credit card debt so high in the U.S.?
Too many cards
Credit cards typically have enticing offers. They may offer you points toward certain prizes, gift vouchers, food vouchers and much more. You’re not limited to having or applying for only one credit card at a time.
While having multiple cards is not inherently a bad thing, it can be when they are all used and the interest rates start piling up. Applying for multiple credit cards can also have a negative impact on your credit score.
Too much temptation
Credit cards can bring a temptation to spend outside of your means. You may have access to items that you couldn’t have purchased before, such as the newest cell phones, TVs and even vehicles. The problem is that money spent on a credit card has to be paid back- with interest.
Credit cards can be very helpful, as long as spending matches income. It’s easy to get into a tough spot financially, even without any careless spending. If you’re in this situation, it’s important to know that you aren’t alone. Seek legal guidance to assess your options and get your finances back on track.