Study suggests heavy credit card burdens not due to bad choices
It is not uncommon to think that if a person has a mountain of credit card debt that they must be profligate spenders. There have been a lot of studies to suggest that it is not the case. The latest of these from the public policy group Demos. And still, the stereotype tends to persist.
According to the recently released study, the factors that appear to be the biggest contributors to households carrying burdensome credit card debt involved things like unemployment, underemployment, health care issues and a general lack of available cash in savings.
The findings by Demos were generated from a survey that was conducted in 2012. What it found was that credit card debt was more 14 percent more likely to be found in homes where just one family member had been out of work for as little as two months during the previous three years.
Another telling bit of data was that nearly 40 percent of responding households with debt loads reported they had at least one family member who had sought full-time work during the previous three years, but had only been able to find part-time employment. By comparison, that scenario was found in only 22 percent of households reporting that they were debt-free.
In the area of health care, 60 percent of respondents carrying debt reported that out-of-pocket costs had led to them to incur credit card charges. It didn’t matter if they had insurance or not.
The fact of the matter is that it is not difficult for persons to find themselves in dire need of debt relief. For many, bankruptcy might be the appropriate means for recovery. To learn what options might exist and which might be best, it’s always best to consult an attorney.
Source: ThinkProgress, “No, People Don’t Get Buried In Credit Card Debt Because They’re Bad With Money,” Bryce Covert, May 10, 2014