How High Gas Prices have Affected Credit Card Debtby Melvin Singleterry (Associated Attorneys)
Credit card debt seems to be running rampant in this country. According to official reports that are conducted by the government, the average credit card holder has around $15,000 in credit card debt. That means that the average person is paying interest on a $15,000 balance every month.
Credit card companies are well aware of the financial strain that the average person is under, and uses that to their advantage. The credit card companies aim their advertising at individuals that they know will be desperate for a line of credit. They sneak in little things like rewards points or cash back that has a horrible exchange rate just to influence you to try and get one of their credit cards. The rewards will not only encourage someone to get a credit card, but it will also encourage them to spend everything that they can on it. An excellent example of this is the free cruise or airplane ticket credit cards. Most of them have an annual fee of around $100, and then you earn points based on the amount of money you spend such as a point per $1 spent. The only problem is that it may take 10,000 points in order to get the free cruise. That means you will have spent $10,000 + $100 fee in order to get your “free cruise.” The average cruise nowadays only costs between $500-$1,000 depending on destination and extent. This is how the credit card companies win out. You have to spend 10 times the amount of money to get your reward.
Many American homes are struggling in order to just get their monthly bills paid and put food on the table. This has led many of these families to look for alternate sources of available money such as the credit card. Credit cards are being used for necessities such as paying bills, grocery shopping, or even simply just to put gas in the car. It would be nice for any family to give up these items, but unfortunately they are what is considered to be necessities. The price for all of these items has been on the rise, and that is where it really hits the average person hard. This means that the average person will not only have to pay the high cost associated with these necessities such as gas, but they will also have to pay a high interest rate on it.
Due to the downturn in the economy many people are looking for professional assistance in order to try and help resolve their credit card issues.