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Poor consumer decisions again cause overwhelming debt

The recent recession taught Americans many lessons regarding personal finances. Many experts believe that much of the cause of the recession stemmed from misuse of credit cards by consumers in Texas and in every other state. This caused many Americans to change their behavior and be more careful regarding credit card use. However, recent research has suggested that Americans are again beginning to throw caution into the wind regarding their credit cards which could result in overwhelming debt.


Much of what causes consumers to make poor decisions with their credit cards stems from psychological causes. The ease and convenience of making purchases with credit cards is tempting for many people, which could result in high levels of debt. Americans have an average of approximately $6,500 in debt owed to credit card companies.

There are some things which credit card holders can do to avoid falling too far into debt. Many personal finance experts suggest that consumers avoid credit cards that charge an annual fee, which could needlessly add to a person's debt owed. Also, experts believe that consumers should stay away from credit cards with interest rates any higher than 15 percent. Additionally, it is best if consumers pay their credit bills on time to avoid late fees.


However, despite taking these precautions, many consumers in Texas and in many other states will find themselves facing overwhelming debt. Life is unexpected sometimes and people find themselves in difficult financial situations for a variety of reasons. This is why the bankruptcy system was created to give people a second chance by helping to discharge many debts while restructuring others.


Source:, "Credit card debt is back on the rise," June 12, 2013

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