In June of 2014, a consumer website conducted a poll asking site visitors whether or not they were embarrassed by their credit card balances. This question was prompted by another survey that found that people are more likely to be embarrassed by their credit card balance than their weight. However, another study conducted by a think tank suggests that there may be no correlation between a high level of credit card debt and responsible household spending habits.
The study took a deeper look into the reasons why people use credit cards to make purchases. Some of the common reasons why people used credit cards included a lack of medical coverage or having a mortgage that was higher than the value of the home. Essentially, the study found that economic factors that may be outside of an individual's control could lead to a higher credit card balance.
Another reason that some people have a higher level of credit card debt is the fact that some people are prone to spend more than others. In some ways, people may be influenced to spend even if they don't need or necessarily want to. Other factors that could influence credit card debt include having children under the age of 18 as well as a lack of a college degree.
Those who have a high level of credit card debt may wish to consult a bankruptcy attorney who may be able to help an individual find debt relief. It may be possible to negotiate with creditors to reorganize an outstanding debt balance or have part of an outstanding debt balance forgiven. If a debt settlement is not possible, an attorney may be able to help determine if Chapter 7 or Chapter 13 is available for a particular client.
Source: FOX Business, "Credit Card Debt Not a Sign of Irresponsibility", Peter Andrew, July 09, 2014
