Overspending is not uncommon, but that does not mean it is harmless. Even spending a little bit extra here and there can quickly build up, leaving people with more credit card debt than they can handle. Even Pennsylvania consumers who budget struggle to get their spending under control.
American consumers are carrying an astounding $4 trillion in debt in 2019, more than any other time in history. Whether for things like auto loans or credit card debt, it seems as if consumers in Pennsylvania are more than ready to improve their financial situations. Unfortunately, this is usually easier said than done.
The holiday season puts a lot of pressure on Pennsylvania residents. People are expected to participate in work events, attend parties and exchange gifts with both family members and friends. Even if someone is doing his or her best to cut back on spending and get debt under control, societal pressure can make it much easier to slip back into credit card debt.
In general, most people in Pennsylvania are just doing the best they can to manage their finances. Money matters can be complicated though, and it is easier to get into debt than many realize. This is especially true when it comes to things like credit card debt and student loans.
Debt is relatively common, and unfortunately, it is taking a toll on many people in Pennsylvania. From monthly bills to harassing phone calls from creditors, it is difficult to escape the constant worry over money. Often, the focus shifts to deciding what to do about it. According to one wellness expert, all that debt -- including credit card debt -- is making people sick.
Debt collectors are supposed to adequately review all relevant information when pursuing legal action against consumers. This is supposed to prevent collectors from filing lawsuits for debt that is outside the statute of limitations or that has already been paid off. The Financial Protection Bureau should be making things even easier for people in Pennsylvania, but new rules could mean even more attempts at collecting so-called zombie credit card debt.
A decade or so ago, credit cards seemed to be one of the last things on millennials' minds. In 2012, only around 40% of millennials in their 20s had credit cards. As of 2019, over half -- 52% -- use credit cards to make purchases. Although it is not entirely clear why this generation shifted its opinion on credit cards, one thing is obvious -- they are having trouble managing credit card debt.
For many Pennsylvania consumers, credit cards help bridge the gaps between paychecks. Others find credit cards useful for making large purchases. Some people simply find it convenient to swipe a card without worrying about the remaining balance. However, credit card debt can quickly spiral out of control, and paying the balance off can end up feeling like an impossible task. Bankruptcy can be an effective option for many individuals in this situation, but personal loans could also help certain people.
Debt used to seem like a problem that only people of a certain age or those who were very poor with money ever dealt with. Now, even young adults in Pennsylvania are finding that getting through life without some kind of debt is not only difficult, but it often seems next to impossible. With a large number of U.S. college students carrying around some type of credit card debt, the problem could get worse for these young adults before it gets better.
Avoiding debt may feel like an impossible dodging act. Whether taking out a loan to attend school or to purchase a vehicle for getting to work, Pennsylvania consumers might struggle to pay off their balances and debts. The problem is especially tricky when it comes to credit card debt. So what's making it so difficult for people to pay off their credit cards?