It never ceases to amaze me how much credit card debt some people have. I was reading something the other day that said that 58 percent of Americans say that they rely on credit as a way of making ends meet. As high of a percentage as that is, I was a little surprised that it wasn’t higher. With the rising cost of gas and food prices, I anticipate it will be raised by the end of this year.

Last year, our nation’s collective credit-card debt was $937 billion, having nearly quadrupled in fewer than 20 years. If our nation continues to spend at the same rate, how is anyone going to afford to live? Quadrupling in 20 years is embarrassing. What are people charging? Things they probably don’t need: new furniture, vacations, new electronics, etc. I think credit cards can be so tempting and I sometimes have to hold back from spending when I know I’ve got my credit card. I feel like if I don’t have to record it like I do in my checkbook, then it’s not as bad because I’m not being held accountable. This is why I only use my credit card for gas or for large purchases I may end up returning. I don’t like tying the funds up if I’m not 100% I’m going to be keeping the item.

This year, close to 2.5 million households are likely to go into foreclosure, and more than a million people are expected to file for consumer bankruptcy. I think this is so sad. While these people have made their own money choices, I still feel for them. I can’t even imagine losing my home. I think bankruptcy is the chicken way out; after all, many people make it their priority to cut back and pay off debt. Just look at how many personal finance bloggers there are!

Why do you think our country has gotten into so much credit card debt?  What’s going to happen in the future?

Posted under Credit Cards, Economy