Credit Card Debt Is Not Limited To The Middle Class
July 30, 2008 · Print This Article
Credit card debt is primarily thought to be a problem restricted to the lower income bracket. Middle class and lower class are the ones thought to carry the largest and the most credit card debt due in part to their smaller pay checks.
This misconception is coming to an end as all sectors of the economy and all tax brackets are beginning to see rising fuel and food prices. In general, the price of living is going up and for those who make considerably more then the middle class are beginning to accumulate more and more debt unless they curb their spending habits.
Bankrate.com’s senior financial analyst put the problem eloquently; “It’s not a function of household income, it’s a function of household spending,”.
While free spending was common among high earning professionals they are no longer immune to debt. Debt counselling services such as the National Foundation for Credit Counselling has seen an increase in the amount of service since last year alone. The NFCC saw a 15% increase since 2007 which translates to about 2.3 million consumers. Of these it is unknown how many are classified as high earning professionals.
No matter the tax bracket, all consumers who find themselves in a mountain of debt with the inability to recover should look towards debt counselling services as a possible way to improve their situation. There are no quick fixes to credit card debt but by living frugally and developing a realistic budget a consumer’s outlook can look just a little less grim.
Everyone is susceptible to credit card debt no matter the age or profession. Just by owing one credit card the possibility of owing more then you can afford is real. With the average household holding up to 5 credit cards, consumer debt has become an all too real problem.
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