Outside of medical bill emergencies I’ve never understood how people can get themselves jammed up with credit card debt.
We have one card and use it very sparingly......if it gets around $500 we start panicking. Lol!
There are a wide variety of different situations—but folks who have high “fixed costs” and then get laid off can get in financial trouble in a hurry.
In most cases they did not save enough for a rainy day and then the rainy day happened.
“Outside of medical bill emergencies I’ve never understood how people can get themselves jammed up with credit card debt.”
auto repair shops know how
High CC limits are partly to blame. By the same token though if you don’t have high limits (and available) it penalizes your credit score. It is a double edge sword that the system wields.
Just ran into it in the last 4 months. Paid cash for a roof replacement, the had a hit/skip car accident with 1k deductible, then the cat had a tooth abscess to the tune of 2k. Stuff can add up too quickly.
I work with and for a lot of well to do folks. You know the people who never complain about money. Well, one just had sticker shock at her vet’s office for her 3 cats annual checkups. She was very,very upset at the skyrocket in prices and contacted me looking recommend a new vet. I told her the prices she paid were fair and every place else is even higher.
Things are starting crack.
I think(and I am NOT a psychiatrist or stayed at a Holiday Inn Express last night) it is a MENTAL ILLNESS of some sorts in many cases. Similar to people that are hoarders. Buying things make them feel more fulfilled some how.
There is also the keep up appearances. Keeping up with the Jones. They buy things for the kids. Like the kids have to go to this lessons. Have to play this sport. Have to have new clothes. Have to go out to dinner 1-2X a week. Have to have a new car instead of driving an older car.