Credit debt and stress With the most recent average household credit card debt reaching nearly $16k with an average of nine credit cards possessed, it is not surprising that there is a direct relationship between stress and credit card debt.
Similar statistics are reported for countries other than the US, such as the UK, Canada or Australia.
The convenience of using credit cards is undeniable, but the psychology of desiring more than we can afford is the devil in the details.
This challenge to "keep up with the Joneses" has its casualties - and they are numerous.
Credit card debt is a very frequent problem and many therapists and medical staff have to attribute severe cases of depression, stress and anxiety to debt related triggers.
The turmoil that breeds stress One of the most important human values is that of stability and balance.
In addition to the need to feel protected and safe, the necessity for balance rules our lives in maturity.
Being in debt is a strong negative factor that interferes with the balance we want.
We are at risk of losing what we already own in addition to having to dole out a lot of money for our accumulated debts.
Individuals going through lengthy periods of being in debt start developing different behaviors that ultimately cause serious medical concerns.
Depression is one of the most frequent problems relevant to debts, mixed with a feeling of being incapable of reversing the problem.
The instability that brings on the lifestyle damaging pressure may often develop throughout time, developing slowly and increasing over time.
By the time you recognize how big the issue has become, there are relatively few alternatives available.
The turmoil may occur because of poor fiscal planning, living a lifestyle that is beyond your means or simply because of an emergency that depleted all of your reserves.
Tips to eliminate and prevent credit card debt Learning to stop or reverse a spending pattern is huge, and many individuals resort to extreme measures, such as cutting up their cards in order to remove the temptation.
Paying the minimum monthly balance is also extremely appealing and many don't understand that with each passing month their debt grows because of the card's interest rate exceeds the minimum payment being made.
Following are a few suggestions that will help reduce your debts or keep them from appearing in the first place:
The more cards you have to manage, the more pressure you will pile on yourself.
Not surprisingly, the persistent stress of extreme credit card debt has taken its toll on people emotionally, physically, in relationships and in their careers.
A bankruptcy filing is often the escape route taken with the mistaken belief that it provides a "clean slate" for the future.
That clean slate comes at an expense which may cost the loss of personal assets if the bankruptcy isn't well planned.
Once you succumb to the lure of the credit card sirens, it can be overwhelming to think of the time it may take to undo that mistake.
Even though it may seem impossible to pay down the debt while and at the same time living day-to-day without the safety net of credit cards, discipline is key.
If need be, consider a credit counselor to intervene on your behalf with your creditors and establish your repayment plan.
With discipline and determination you can eliminate your credit card debt and the accompanying stress.
Similar statistics are reported for countries other than the US, such as the UK, Canada or Australia.
The convenience of using credit cards is undeniable, but the psychology of desiring more than we can afford is the devil in the details.
This challenge to "keep up with the Joneses" has its casualties - and they are numerous.
Credit card debt is a very frequent problem and many therapists and medical staff have to attribute severe cases of depression, stress and anxiety to debt related triggers.
The turmoil that breeds stress One of the most important human values is that of stability and balance.
In addition to the need to feel protected and safe, the necessity for balance rules our lives in maturity.
Being in debt is a strong negative factor that interferes with the balance we want.
We are at risk of losing what we already own in addition to having to dole out a lot of money for our accumulated debts.
Individuals going through lengthy periods of being in debt start developing different behaviors that ultimately cause serious medical concerns.
Depression is one of the most frequent problems relevant to debts, mixed with a feeling of being incapable of reversing the problem.
The instability that brings on the lifestyle damaging pressure may often develop throughout time, developing slowly and increasing over time.
By the time you recognize how big the issue has become, there are relatively few alternatives available.
The turmoil may occur because of poor fiscal planning, living a lifestyle that is beyond your means or simply because of an emergency that depleted all of your reserves.
Tips to eliminate and prevent credit card debt Learning to stop or reverse a spending pattern is huge, and many individuals resort to extreme measures, such as cutting up their cards in order to remove the temptation.
Paying the minimum monthly balance is also extremely appealing and many don't understand that with each passing month their debt grows because of the card's interest rate exceeds the minimum payment being made.
Following are a few suggestions that will help reduce your debts or keep them from appearing in the first place:
- Stop unnecessary spending - never treat your card as a short term loan, as this will affect your lifestyle and you will spend well above what you can repay.
Apply advance planning and never spend above a self-imposed limit per month. - Plan your budget - examine your past habits and adjust them.
The best way to eliminate credit card stress is to be in complete control of your spending.
When you know exactly how much you can allow, you will establish more realistic goals for your cash and your spending will be more controlled, rather than emotional. - Plan for large investments - never use your cards to pay for larger investments, such as a car or major home improvement.
Also keep in mind, when getting a mortgage or car loan that your debt will increase correspondingly.
It's hard to believe that you will be able to avoid debts if you take out a huge mortgage and also continue to spend cash just like before the loan. - Don't use one credit card to pay for another card - this is not a long term solution.
Resorting to this will most likely result in bankruptcy, as the accumulated interest rates are too high to recover.
The more cards you have to manage, the more pressure you will pile on yourself.
Not surprisingly, the persistent stress of extreme credit card debt has taken its toll on people emotionally, physically, in relationships and in their careers.
A bankruptcy filing is often the escape route taken with the mistaken belief that it provides a "clean slate" for the future.
That clean slate comes at an expense which may cost the loss of personal assets if the bankruptcy isn't well planned.
Once you succumb to the lure of the credit card sirens, it can be overwhelming to think of the time it may take to undo that mistake.
Even though it may seem impossible to pay down the debt while and at the same time living day-to-day without the safety net of credit cards, discipline is key.
If need be, consider a credit counselor to intervene on your behalf with your creditors and establish your repayment plan.
With discipline and determination you can eliminate your credit card debt and the accompanying stress.