Between credit cards, tuition expenses and impulse purchases, Americans are being sunk by debt. While a multitude of factors contribute to increased personal debt, there are six common reasons that Americans experience debt.
Rewards programs and points systems have people in a credit card frenzy. The only problem is that these programs lure spenders in with attractive offers for a certain amount and then lock them into annual fees. Before you know it, you’re in debt while the credit card companies flourish. Use just one or two credit cards and don’t be tempted to sign up for more. You should also be paying off all your bills on time and in full to keep your debt to a minimum.
Society views higher education as a fundamental building block of life. While a high-level education is advantageous in many aspects, its astronomical prices are a financial hindrance to many throughout their adult lives. To save money, consider going to a community college before transferring to another school, and look into all the scholarships available. School is a good debt, as long as it leads you to a rewarding career that can allow you to pay back that debt.
Whether it’s a student loan or credit card payment, interest rates are the sneaky percentages that crop up like dandelions in the summer. Many ads boast “no interest payments,” or “0% your first year.” However, interest rates contain critical information in the fine print that can lead to paying more than the initial total. Be sure to pay off your debts sooner rather than later to avoid the high interest rates that could cause even more financial trouble.
Technology is useful for directions and accessibility, but the dark side to the Internet is online shopping. You can find and purchase anything in a single click, which can be a huge financial stress for impulse buyers. Many companies offer enticing “buy now, pay later,” schemes that launch people into a mess of debt that is hard to clean up.
When you co-sign a loan for a family member or a friend, you expose your financial vulnerability. If someone stops paying rent and your name is on the lease, you’ll be responsible for missed payments. If you really wish to help someone out, consider lending them money and making a plan to have them pay you back, instead of getting into financial trouble and hurting your credit.
Banks often require red-tape that makes it difficult to obtain the necessary capital you need to pay off debt. Ellis Equity hard money lenders in Texas can close loans that banks can’t complete. Allowing you to withdraw equity out of your land is a great solution.
Debt affects people nationwide. If you feel as though you don’t have the self-discipline to stop on your own, reach out for help and financial relief. It’s important to get out of debt as quickly as possible to avoid even more worrisome financial problems.