Effects of Credit Card Debt
These days, more people are hoping to stay afloat by using credit cards to pay their day-to-day expenses. At one time excessive credit card debt was generally due to excessive spending, oftentimes for luxuries and non-essentials. Today, more people than ever are putting their weekly groceries on their credit card.
The very reason they are using the credit cards is creating the problem. If you don’t have money to pay for the necessities, you don’t have money to pay the credit card off each month. The exorbitant interest and fees charged by the credit card companies make it nearly impossible to pay them off once they start building up. Soon, people find themselves drowning in debt.
In May of this year, more than 106,000 people filed for bankruptcy. That’s up 40% from a year ago May. A good number of these people owned their homes but will soon be losing them. As long as this trend continues, the number of foreclosures will increase.
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