Do you tend to avoid discussions about finances because they stress you out? If so, you are in good company as many other New Jersey residents do the same. Your financial journey has probably included a lot of ups and downs, with some months or years a lot better than others. Many people are currently facing serious financial problems, some that stem from major credit card debt.
Perhaps you can relate those who say they thought they had their credit card balances under control when one or more issues arose that tipped the scales in the wrong direction. You'll be glad to know that most financial crises are temporary and that many people have been able to restore financial stability by starting over with clean slates. By exploring options, such as bankruptcy, you may be able to rebuild your finances as well.
These issues often cause credit card debt
Every person's financial portfolio is unique. You may find, however, that you have had similar experiences to others in New Jersey regarding what types of situations most often cause credit card balances and finances to get out of hand. The following list shows some of the most frequently reported problem issues:
- Income problems: If you or a co-breadwinner in your household loses a job, it can quickly turn a financially stable situation into a serious crisis. When this happens, many people resort to using credit cards to make ends meet.
- Bad spending habits: If you use credit as cash for small expenses, you may be surprised at how quickly your balance escalates. If you don't pay off your balance every month, your interest rates are likely to soar as well, causing additional debt.
- Medical emergencies: This is, by far, one of the most common causes of credit card debt in the United States. Medical care is expensive and if you face an urgent situation for which you are not prepared to meet expenses, you may do what thousands of others have done in the past, which is using credit cards to pay medical bills.
- Other unforeseen expenses: Even minor issues, such as a flat tire on your car or a plumbing problem at home can create unforeseen expenses can add up if you use your credit card to cover the costs.
If you're cautious to differentiate between needs and wants regarding credit card purchases, you may be able to get your debt under control. However, it doesn't take much for things to get out of hand and it's good to know that there are often several options available, including various types of bankruptcy that can help you wipe the slate clean and start over, when necessary.