Why do so many people keep going into credit card debt?

Question? What makes people keep using them when they see the destruction it is causing?





Many people, mostly younger folks and women, have so many credit cards they end up in severe debt and ruin their credit for many years to come. Credit card applications are mailed out by the tons and people keep activating them knowing the interest rate is or will be up to 20% or higher. Everyone needs at least one credit card and no more than two. You also need one revolving (department store) credit card to establish a good credit history. The limit on the credit card(s) should be no more than 10% of your annual salary and the revolving card half that. Always make a minimum of a double payment on all your credit cards and pay on the due date. Never ever be even one day late. The interest rate and late fees will destroy you. If you are experiencing problems the first thing you need to do is carefully cut the cards up and throw them away. If you can not afford to pay the total monthly bill attempt to get a consolidation loan to get out of debt. The monthly payment will be less than the total monthly payment of all your cards with a much lower rate. Some banks and credit unions will be willing to help you out if they know why you are taking out the loan. Financial debt can create so much strain it can even destroy your peace of mind and your marriage. Don鈥檛 fall into that trap.|||My question to you is: Why do credit card companies continue to blindly give out credit cards to people without checking their finances?





Does it make sense to you to give a credit card to someone who already has several loans and their combined minimum payments is over 50% of their income? Would any sane person give credit to someone under this situation?





This is exactly who credit card companies go after though. Who's fault is it?|||Easier said than done.





When I got my first card, I did exactly what you suggested. I rarely, if ever, carried a balance from month to month. I charged very few things---just enough to show activity on the card to build my credit history.





Then my employer went bankrupt and we were all laid off. I cut all the expenses I could and went on a strict budget. (not even a cell phone!) I found another job and that employer went out of business as well a year later. I stayed within my tiny budget (retail doesn't pay very much) for all normal living expenses---rent, ramen noodles, etc. I didn't eat out and didn't spend money on cds and dvds. I stopped shopping for clothes at the trendy shops. This worked for the day to day expenses. The problems were when something unexpected like a big doctor's bill or a car repair bill would come up. Then I would usually be forced to turn to the credit card. Several big unexpected and unavoidable things like that can easily tip you into credit card debt.





To pull myself out of this trap, I went back to school to finish my degree which meant incurring even more debt for student loans. (I made too much for the Pell grant but not enough to live on, go figure!) Now that I have my degree, I have a much better paying job and career.





I know all about responsible credit usage but life isn't perfect. I never took a credit card to Best Buy and purchased an entire media room. But when you take your sick dog to the emergency vet and they tell you that it will be $1200, there isn't much you can do except reach for the Visa|||I just noticed you addressed me directly in another post, so I found this questions and others you have asked.





You will be interested to know that I am a father of four, that I still support Shawn Hornbeck's parents, that I pay off my credit cards each month and if I can't, I cancel the card and do without until it's paid, I served in Iraq, and I love America. Glad you are enjoying your time on answers...just don't assume that the answers you see are from kids, and don't assume that people with different opinions aren't as smart.|||People want a better lifestyle than they can afford and because of this instant gratification mentally people have developed they want what they want NOW and do not think about the bill that comes later and do not care until the repo man is knocking at the door. I see this as a worse threat to our country than any terrorists could ever be. We are destroying ourselves.|||short answer is that they are over-extending themselves. overspending based on "available" credit, not what' in their pockets. The answer is to make a budget and stick to it.|||ima a cashier at a restaurant and whenever ppl come up to pay I see they have like 15 credit card. WTF? isn't one or two enough. say they lost their wallet then they would have to like call each credit card company. common pplz|||I sincerely appreciate the fact stated by you and to be honest even I am one of the fool who got trapped and trying to come out slowly.|||for debt elimination i always recommend going to this site - in my experience it's the best by far.|||Yes it is bad, but nowadays people love to live out of their means and this is the only way they can do it.|||because they want what they want when they want it. we are not taught to save money and then buy. we are taught to apply now, then cry later. i stopped using credit cards for almost a year now and it's been great.





advertisers make it seem so easy to get what you want and pay it off later, until an emergency comes up then you can't and they've got you.|||Great sermon - but ..... you are preaching to the 'gotta have it now' crowd and....they don't really care about possible consequences.





The only person I can change is...Me. :o)