Many Americans are embarrassed by their credit card debt, but they never want to talk about it. What they do not realize is without discussing the issue; they will not overcome it and will continue to stay in debt.
A national survey was conducted where 42.4 percent of Americans stated having credit card debt with the average balance being an astounding $10,902. A survey that was conducted by the National Foundation for Consumer Counseling found a total of 37 percent of Americans are more embarrassed to admit their credit card balance than their weight or age. The main question that arises here is why many of us are fearful when discussing the credit card debt problem many of us are going through. Could this potentially be causing a bigger problem for us in the long run?
Debt Is Failure And Weakness
Credit card debt is seen as weakness and failure of an individual and those who spend too much are suspected of either:
• Shopping too much
• Living a life they are unable to afford
• Living beyond their means
This is in fact true as someone with a credit card is ought to find the shopping experience much easier in regards to payment. If you have a credit card, you don’t really have a budget to stick too, which means you tend to go over what you should. There are several studies that have shown paying with the plastic card results in spending much more. Studies have also found credit card debt is caused by many silly mistakes we make. For instance, if we can get an item cheaper, we usually end up paying much more for it because of the mere fact we are paying using a credit card. Results obtained from such studies show individuals are more than likely to pay double for an item when using a credit card.
Medical Expenses And Job Loss
The biggest causes for credit card debt are:
• Medical expenses
• Job loss
Around 15 percent of the population does not have health care and emergency expenses usually generate huge medical bills. Also, when it comes to job loss, one must be financially prepared; as such debt tends to accumulate instantly. Such credit card debt problems are no reason to celebrate, which explains why people suffering from this remain silent and embarrassed.
Silence Is Costly
Credit card debt can be expensive as the majority of store cards can charge over 20 percent irrespective of your credit score. Over 75 percent of people who are in credit card debt tend to be paying extra interest rates that are higher than 15 percent. Many of us, up till today remain silent about out credit card debt, which can cause the following mistakes:
• We constantly continue to live our current lifestyle, which means eating in the same restaurants and buying clothes that we are unable to afford. In order to keep this lifestyle running, we usually turn to the borrow method, which usually worsens the whole thing.
• Much of our money goes towards our debt. Many of us don’t discuss debt related to credit cards as much as we do about mortgage debt. This is because mortgage debt is tolerable, which is why there are many discussions regarding it. Our fear of not discussing such debt is an advantage for banks, which benefit from such fears.
• We miss the chance of helping others as well as our children. If we are afraid to admit our debt issues to family, friends, and children, we are actually not teaching others to overcome mistakes we have made.
Start The Conversation
It’s time we start speaking openly about our debt change our actions and be more supportive to those who are facing similar situations. It would be much easier if we got together about the subject and discussed ways to fight debt. It’s just like supporting friends who are running a marathon or losing weight, so why not getting out of debt? The silence will only break once someone is brave enough to speak up and put an end to the quietness.
You Can Get Out Of Debt
You can get out of debt, following the right advice and solutions, as nothing is impossible. However, if you had friends and family supporting you the whole way, then that would be a tad better and easier. Such people will be aware of your commitment and support you the whole way ensuring you fulfil your goal and fight your way through debt. Friends and family can help by constantly guiding you the whole way and stopping you from doing certain things, such as overspending and frequently eating out at expensive restaurants.
The way to get out of debt is pretty straightforward especially if you refinance your debt to one of a lower interest rate and cut on your expenses. However, if you are supported the whole way, then this actually works out to be more effective.