Of all the types of debt incurred by people in Tennessee each year, it appears that credit card debt carries the largest stigma. According to Time magazine, the average American household has over $15,000 in credit card debt and 70 percent of Americans think credit card debt is more looked down upon compared to other types of debt.
Certain kinds of debts, such as mortgages, student loans and auto loans, can help strengthen your credit and put you on solid financial footing. In theory, credit card debt is meant to be paid off quickly. However, credit cards almost always carry high interest rates and people often find themselves holding the debt much longer than they originally intended.
While some credit card debt may be the result of irresponsible spending, another important factor is at play. The cost of living has increased over the last decade, while income levels have not risen at the same rate. This has led many Americans to rely on credit cards for certain purchases that they may have otherwise been able to pay for up front. This often includes unexpected doctor and hospital visits, thus putting many Tennesseeans in the difficult situation of racking of interest on large medical bills.
Being embarrased by the amount of one’s debt seems like it would be a good motivation to pay it off. However, US News & World Report reveals that the shame often leads people to bury their heads in the sand and ignore the problem. In order to conquer their credit card debt, people should strive to work past the embarrassment and face the problem head on. Implementing a smart debt payoff plan and planning in advance for future purchases can go a long way toward preventing more credit card debt and the embarrassment that goes along with it.