Email
Print
I was hanging out with some friends yesterday, and after eating ourselves into a food coma, we were lounging around and watching a movie on Comedy Central. During one of the commercial breaks, one of those debt management commercials came on. At some point during the commercial, they mentioned being able to help even if you were tens of thousands of dollars in credit card debt.
One of my friends snidely remarked, “How do you even get into that much debt?”
The comment got me thinking and wondering — why do people fall into credit card debt?
Despite being a frequent user of credit cards, I’ve never carried a balance on a credit card. In fact, I’ve never even come close to carrying a balance on a credit card. I’m guessing my friend who made the comment has a pretty similar track record.
However, I do know that some of my other friends have been or are currently in credit card debt. Some have had better reasons than others. Med school applications, a new computer, video games, furniture, and car repairs are just a few of the stories I’ve heard. I’m sure there are many more that remain untold.
So how about you? Have you fallen into credit card debt? How did it happen?
For more timely, relevant, and engaging articles,
subscribe to Brazen Careerist.
Comments
Editor's Note: Inappropriate comments that are offensive to the author or not in context to the author's post will be removed. For editorial feedback, please contact our Community Manager through his user profile. Click here.
May 4, 2009 11:22 am
Number one reson: Medical Bills
May 4, 2009 12:13 pm
Is that really the most common reason, @JRandom42, or just the one that's easiest to sympathize with?
There are all kinds of reasons, of course. Some are easier to avoid than others. I've carried a balance, but not without planning, and for about 95% of the time I've paid off the bill each month. But there are an awful lot of people who just spend more than they make, in what appears to be an indiscriminate matter.
Mr. Nonymous and I often ask, "Is this how we want to spend this money right now?" It's a good way to avoid impulse purchases, because often the answer is, "No, there are other expenses that make more sense--this can come later."
May 4, 2009 1:29 pm
I have seen data that Medical bills are the #1 reason for bankruptcy. Now you can make a connection between bankruptcy and credit card debt. However, the number of people with credit card debt exceeds the # who file for bankruptcy so I don't think that you can conclude it's the top reason.
May 4, 2009 1:47 pm
I can definitely believe that it's the #1 reason for bankruptcy. Interesting to see if the numbers shift as a result of the housing crisis, though.
May 4, 2009 1:58 pm
With health care costs rising and people losing their insurance since we have decided as a country to link employment and health coverage, I doubt it.
I wonder if foreclosures get tied to bankruptcy. People may walk away their houses before declaring bankruptcy
May 4, 2009 2:36 pm
I got into the little bit of debt I have by being laid off and unemployed for three months. During that time my computer died, and since I was trying to freelance while I looked for another job, I had to buy a new one. Then my brother went into the hospital, and I had to take a trip out of state to go take care of him. And unemployment only covered my bills. So groceries? yep, credit.
I didn't do anything extravagant. I didn't eat out or buy clothes or go to movies. It was just some basic stuff and bad timing.
May 4, 2009 11:05 pm
I personally have never been in credit card debt but there was a good true life about it on mtv. i think the people on the show literally were just unaware of how much debt they were actually piling up. most of the people would say how they would just pay the minimum payments required each month. and as that added up and up, next thing they know they're in debt 10,000. It's a bad cycle but I think it all start from a major lack of knowledge about the concept of credit cards.
Of course, there are also the other legitimate reasons that are sometimes out of peoples hands - ie med bills, college loans, etc
May 5, 2009 5:32 am
I moved cities two years ago to join a new place of work. To do so I paid for the movers and my tickets - to the new city as well to a short trip home with my credit card. Before I knew it, I had a substantial amount due on my CC.
While I waited for my new employer to reimburse my relocation costs, my CC company sent me only physical bills - to my old address. I too, conveniently forgot to ask for them.
In a couple of months I got an e-statemtn. I was in debt. Thankfully I had the money and I repaid the CC company asap!
Thats the closest I ever want to be in debt. Since then I try and remember all my CC expenses. \
June 2, 2009 12:21 pm
If americans wouldn't be so spoiled and overspend more than what they make, credit card debt would not be in issue.
Only in America can you afford that BMW, that Mercedez Benz, those first class airline tickets no matter what you make or what occupation you hold.
April 2, 2010 6:31 pm
It is an interesting question here. I would say that the biggest chance to fall into such a debt is to lose a credit card and someone would take 10 thousand from it. Another chance is your wife who would also take a nice sum from your credit car. Another version would be being drunk and buying a ferrari. As you see there are many versions how is it possible to get such a huge credit card debt. Of course I am only joking around, I don't know the real reasons why is it happening. However this article was interesting to read for me, thanks!
Regards, Jennifer Tickson from payday loans no credit check website
July 30, 2010 7:46 am
Credit card debts are the very frequent phenomenon in our country today. People don't check their financial movements on banking account. And very popular payday loans make these debts more deep. We should pay it more attantion because our financial welfare depends on it. But when the debts are fact we can consolidate debt online. This service is very simple and fast.
Got Something To Say?
Got Something To Say?
Not a Member? Brazen Careerist is a career management tool for next-generation professionals. Set up a free account today to comment on this post and start sharing your ideas. Learn more.
Login to view your networks!
 |
 |
 |
 |
 |
Grad School Zone
GMAT Prep Courses Start This Week!
0 Comments
If you're applying to business school this year, hopefully by now you have a great GMAT score under your belt. If not, there's still time to properly prepare for the exam, get a competitive score, and complete your business school applications this year. But, you'd better start your test preparation now to give yourself enough time. You're in luck. This week we have GMAT prep classes starting all over the world. Whether you're looking for an in-person class, an accelerated or weekend course, online GMAT prep, we've got you covered.
READ MORE0 Comments
