What Drives Credit Card Debt

There is a widespread concern about rising levels of debt. Debt can become disastrous for those who live alone or those families who are already having problems with supporting their family. The people who might be struck by debt, they might have trouble recovering. Debt can cause Americans to lose their homes and stability they need to feed, and shelter their families. Although debt comes upon us Americans quickly, people can see debt as terrible thing to be stuck with. It has many disadvantages that can devastate to people.

Of that debt ninety-eight percent is credit card debt. Adults feel that if they want something they deserve it right now. This need for immediate gratification is the reason for our sky high national debt. Our “I’ll buy it now and pay for it later” mentality is turning out to be a downfall of our country.

College is a heavy financial burden. That is why understanding money saving at a young age can help you in the end. Many look past the point of having to pay for college and go ahead at it blindly. Most who do this will end up signing the papers for student loans just so they can pay for college. Signing up for student loans can lead to many bad situations some of which include debt and dropping out of college. This is why it is crucial to try and stay away from student loans and pay cash for college.

For this paper, I will be providing context on how student debt is effecting college students. For most Americans, the best way to better your life is by attending college. Many American college students take out loans to be able to attend college. Unfortunately, with college tuition increasing, so does the amount of loans that is necessary to afford it. Many Americans are in debt, it is affecting the American family, and prevents college students to start their own family.

Living in debt has become the norm for most U.S citizens, with nearly 80% of the population in some kind of financial dilemma. Even the national government is trillions of dollars in debt, and the main cause is spending money we don't have. If everyone would stop using credit cards, taking out huge loans, and buying houses that they really can't afford, the economy might slowly regenerate. Many people don't understand how fast debt can build up and how much interest rates can increase that debt. Yes, life would be a lot more difficult for many people if they could only use money they actually have instead of paying it back later and adding on debt, but sometimes change is needed. No matter how difficult this change may be to implement, it may

In the world of personal finances, credit cards play an important roles in lives of many people. Sometimes, it's out of choice while other times it happens out of necessity. Regardless of why it happens, the numbers surrounding credit card debt are worthy of scrutiny in order to determine whether having or using credit cards is a sound financial decision.

The explosion of credit card use among college students has woven itself into the fabric of campus life ultimately impacting how students interact and begin in the financial industry. As students gain more freedom away from home they often begin to experience various social changes. One area in particular that is cause for concern is the number of students incurring credit card debt. Due to growth in credit card usage and the rise of debt, the ideas discussed in this paper represent the growing need to evaluate credit card company solicitation efforts aimed at students and how to begin negotiation to amend these practices. Through mediation, the focus will be to investigate if college students receive ample education on credit and

Credit cards have become increasingly popular world-wide, making it easier to buy now and pay later but are they actually helping or hindering someone’s credit? “Maxed Out” by James D. Scurlock demonstrates how credit cards can hurt someone’s credit, while “Why Won’t Anyone give Me a Credit Card” by Kevin O’Donnell demonstrates how someone may have financial stability to pay off a credit card, but still be consistently denied one by the credit card companies. Owning credit cards is not the problem; the problem is being irresponsible with it.

“In a nutshell, the system is geared to keep you in debt” Kevin Trudeau writes in his book “Debt Cures” At the time of publishing his book (2007) The average American consumer had more than $8,000 in credit card debt. Today the average American household owes double the amount at $16,000 in credit card debt. As NerdWallet puts it “Debt is American as apple pie.” Being the 4th highest type of debt in America at $750 billion, just below mortgage, auto debt and student loan debt. Credit card debt is one typical type of debt Americans have to deal with because of the “aggressive practices by the entire lending industry” Trudeau says. Kevin

One research study suggest that high unemployment is effecting how students can pay for school (Roksa,& Arum 2012) With countless students graduating during the same time, many students are fighting for jobs after college. Many of college graduates are having a hard time to find jobs within their respect major. One of the variables that the research examine was college students who graduate in four years. the way they went about measuring this was surveying 925 participants that graduated in four years for 2 years after graduation. the participants were men and women from different ethnicities and backgrounds. Their findings were that since being in debt, most of them had a hard time transitioning into adulthood. Many of them seek assistance from family members, and many of them lived at home. Because of being in debt, and living at home. Many of them were single, and only a few got married. Since being in debt, they were less likely to be married or be living with their significant other (Roksa, & Arum

One in five US citizens are struggling to cope with medical debts and an ‘alarming high’ proportion of adults with chronic illness regularly skip their medication because they can’t afford it, according to a new study conducted by the Commonwealth Fund (Royal Society for the Promotion of Health, 1996). The study, which surveyed 4,350 adults across the country, also found that two out of five uninsured adults who reported debt were unable to pay for basic necessities like food, heat or rent because of mounting medical bills (Royal Society for the Promotion of Health, 1996). The uninsured are more likely to go without preventative care or screening tests that could prevent more serious and costly health problems (Royal Society for the Promotion of Health, 1996). For an uninsured person who is unlucky enough to get sick, it is easy to see how quickly they can fall into a downward spiral of debt, forgone care and poorer health (Royal Society for the Promotion of Health, 1996). Individual income impacts health status, but it is confounded by variables such as education and social capital. Social capital theory describes social relationships and their impact on health. Income distribution, the gap between the wealthiest and poorest, also affects health (Sistrom, Hale, 2006).

Credit card debt arises because of unexpected predicaments or impulsive financial decisions. Financial hardships, like credit card debt, are usually the result of poor financial knowledge. This issue is most frequently found in junior enlisted service members, single parents, separated, newly married, or those who have recently relocated. “A survey of 700 service members reveals that, more than one in four reported having more than $10,000 in credit card debt. The enlisted personnel were the highest to respond with making the minimum payments and paid late fees” (Singletary, 2010). Credit card debt may cause difficulties in Soldiers and families, has been associated with depression, and influences personal relationships,

The government is in debt, not just the U.S government, but the people are in debt too. They expect us the pay the slack of what the big rich corporations that use to pay. Until president Ronald Reagan; screw us over with a bill he passed. They use to pay about thirty percent of taxes now they just pay like five percent. We the people need to try to stop spending what is not worth while. We need the rich and big companies need to pay more taxes because , the middle and poor don’t have money to pay off there slack all the time. It’s crazy that many people live paycheck after paycheck. They don’t have time relax and have a vacation their Hustlin 24/7. That’s sad how they're

I often wondered why the wealthiest country in the world, forcing their children into dangerous situations that will allow them to be victimized by illicit industries to pay their college debt? In middle school, I learned that when solving a word problem or answering a question the first step is to examine the cause. Therefore, in this essay, I will examine the main cause driving college students to take part in illicit activities to pay their student loan debt. Furthermore, I will examine the demand to pay clause with student loans being the only option for many middle and working class families to pay college debt. Subsequently, I will conduct a survey consisting of one hundred college students from different universities to determine

The LCH model posits that people save when income is greater than the resources needed to meet current consumption and that people borrow when income is insufficient. The basic model of the LCH, however, does not explicitly consider financial shocks, such as an unexpected health condition and the corresponding impact to savings or the accumulation of debt. Debt associated with a home or car loan is viewed as a necessity while credit card debt is frequently viewed as excessive spending; but in reality, those in severe credit card debt are often those who have experienced a recent job loss and/or health problems (Drentea & Lavrakas, 2000). As people age, their health care needs begin to change. An increase in the consumption of health care services may require the allocation of additional household resources to health care costs not covered by insurance and depleted savings. The increased use of health care services may also lead to increases in borrowing (Kim, Yoon, & Zurlo, 2012). As more employers eliminate retiree health insurance coverage, retirees will have Medicare as their primary source of health care coverage. Some retirees may even have a gap in coverage if they lose their job or retire prior to the age of 65, when they become eligible for Medicare. This occurrence may lead to a significant number of consumers being exposed to a higher potential for medical debt.