In the past, credit card debt was something that was associated with people who just didn't pay their bills. It was associated with people who were irresponsible with their money. With the economic downfall that happened a few years ago and the snail's pace improvement, some people who are responsible with money are having to turn to credit cards just to make ends meet. Learning how this affects people might interest our Philadelphia readers.
The sad fact of the matter is that upper class people are moving back to an all-cash system while lower class and middle class people are still having to cope with diminished savings accounts and a reliance upon credit cards to get the basic necessities of life. For lower and middle class people, non-discretionary credit offers seem to abound while wage growth is almost nonexistent. Banks and lenders are almost anxious to hand out credit partially because of the interest rates that are nearing 0 percent.
Even educational loans and car loans are easier to get now than they were historically. When you add this into the ease of getting credit cards, there isn't any wonder why so many people without sky-high incomes are getting into debt.
There is a catch to all this credit going around. The catch is that the people who are turning to credit to make ends meet might soon find that their interest rates are going up while their income remains the same. This leads to difficulty repaying the credit that was extended to them.
The good news is that there are legal avenues available to people who need help to get credit card debt under control. Learning about these options might help you to decide how to take control of your finances.
Source: MarketWatch, "Americans are getting into debt to afford food, gas" Peter Atwater, Jun. 19, 2014