The Vicious Circle of Credit Card Debt

Where does the circle of credit card debt really begin or for that matter why? Here are a few answers to that question.

The beginning:

When youngsters reach the age of being financially responsible according to the lending institutions a new door to life is open to them. Now they can start learning one of the major purposes of plastic besides that which is used in throwing away dishes. Now it be comes used as throw away money. This is a little harsh but when you think about it that’s what basically happens.

Credit card companies almost line up to be of service to the new credit prospect. In many cases small balance cards are even available to individuals who have no viable income. Once a source of income becomes evident for the prospective credit card user, it is not uncommon for a person to have three to six credit cards all for different purposes. Yet ironically one card would probably suffice for all those purposes. There is almost a social status attached to how many credit cards a person can possess.

The middle:

Once an individual has all these fresh new credit cards in their hands now the buying frenzy begins and out the window goes any concept of budget. Now to be fair this is not always the case, there are many people that have set themselves rigid credit card control and do very well with this type of financing. Unfortunately though it seems that there is a lot more that don't, and debt consolidation companies are certainly kept in business with this group of individuals. Most often the buying frenzy comes to an end when the monthly payments begin to escalate. The major buying though is often done in the first month because the credit card holder has been hit with a monthly statement.

The end: