Credit cards - Where does the debt come from? Part 2

Accumulated credit card debt has overwhelmed a lot of Borrowers, with the average household holding a five figure debt on almost twenty credit card accounts. In part 2 of this series, we will take a look at the top ten reasons why Individuals have so much debt on their credit cards.

Continued below

• Medical expenses. The nitty gritty is this - Americans who have health insurance have it because they work for someone who is nice enough to buy it for them, and everyone else is left to their own devices. If you have ever had to pay for dental work or a colonoscopy with a credit card, you are aware that the experience can be as painful as the medical service itself. The health insurance system in this country is a mess, and a full Web site could be dedicated to finding solutions to the problem. Until Congress can work out some sort of fair and equitable system for Medical insurance for all Americans, health expenses and credit card debt will always be linked.
• Hoping to win the lottery. Don't count on what you do not have and don't blow tomorrow's money today. Some people just do not worry about the future, hoping that, one way or another, it will tend to itself. A lot of people hope that they will win the lottery, or the Publisher's Clearinghouse sweepstakes, or perhaps they'll find gold in the back yard or inherit a ton of money from Aunt Elsa.

• Less job than they need. Holding a part time job and spending like you have a full-time position is a problem. Until your salary catches up with your expenses, you're spending too much money. If you are going to spend more, then you might need more money.
• Inability to talk with spouse about finances. Many American households have two wage earners who are not experienced in talking about finances. If one spouse is cautious about spending and the other is buying every item advertised on the Home Shopping Network, the household will have a predicament, and a large one. Conversation is vital when it comes to managing money. Not only should a husband and wife be able to talk about money so that they may effectively manage it, they also must have an objective and not work against each other.
• Wagering. The simplicity of Web wagering, legal or not, makes it way too easy to blow hundreds or thousands of dollars from your house. Thousands of individuals have lost all they have this way - job, house, husband or wife, car or truck. It is not only a quick path to poverty, but it is also a speedy route to bankruptcy court.
• Lack of knowledge. A great number of people don't even learn how to write a check in school; it's no surprise that they don't find out about stock funds, checking or savings accounts or IRAs, either. Information is power, so if you do not know how financial transactions work, buy a book. A big component of money handling is understanding how financial transactions work.

Overcoming financial struggles is lots of work, but it can be accomplished. The disaster of spending too much and putting away too little is rampant in the United States. People with financial woes should spend the time to assess their circumstances so that they may see how they could effectively deal with it.