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Top reasons for major credit card debt

It's certainly possible to use credit cards without having any real debt at all. As long as you only spend as much as you earn -- or less -- every month, then you can pay it off at the end of the month. Most cards don't have any fees if you do this, so it's not that much different than using a debit card or the cash you have on hand. You're just running everything through the card first, perhaps because of the rewards points.

However, people do struggle with credit card debt on a consistent basis, so it's clear not everyone has an easy time with this. One of the biggest reasons for it is that they use the card without a budget. If you accidentally spend more than you'll earn, that's when debt piles up.

Another major reason for debt is that people lose their jobs unexpectedly. If you're charging everything on the card to pay it off at the end of the month, and then you get fired, you're likely not going to make that payment. You may even have to put more debt on the card just to buy necessary items while searching for a new job.

It is also true that irresponsible purchases rack up debt. Credit cards come with minimum payments, but only paying the minimum means you pay high levels of interest on everything else. Buying more than you can afford is dangerous.

Are you in over your head in credit card debt, and are you looking for a way out? It's wise to consider bankruptcy and all of the other debt relief options you have in Arkansas.

Source: Our Everyday Life, "Main Reasons People Get in Credit Card Debt," Sam Ashe-Edmunds, accessed Nov. 10, 2016

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