For many Tennessee residents, one of their most embarrassing and shameful situations could be the amount of credit card debt that they have accumulated. They may fear that their credit card debt points to a lack of ability to properly handle their finances. However, individuals should not necessarily feel as if they are irresponsible if they have accumulated significant debt because many factors can lead to individuals maintaining debt balances.
A recent study has reportedly indicated that individuals and households that carry debt are not necessarily more irresponsible with their income than individuals who do not have debt. If individuals do not have health insurance, they may be more likely to have considerable debt than individuals who do have insurance. A sudden medical emergency can occur at any time, and without the insurance assistance, debt can quickly accumulate.
The loss of a job can also be a significant factor in the amount of debt that a person carries. If their income is suddenly lost, they will likely have more difficulty in handling their necessary expenses. In such a case, credit cards may be needed to help make ends meet until a new income can be generated.
It is true that excessive spending and bad habits can lead to significant credit card debt, but there are also many instances in which a party may have been unable to avoid accruing debt. Instead of feeling ashamed of their situation, individuals may look to find management options. For some Tennessee residents, bankruptcy may be an option that could help better their financial situation and alleviate negative feels associated with their circumstances.
Source: Fox Business, “Credit Card Debt Not a Sign of Irresponsibility“, Peter Andrew, July 9, 2014