The Problems of Credit & Debt Over-Use

Because credit cards and loans offer a way to pursue your financial goals, they can benefit you. However, when you rely heavily on credit to achieve your goals and have a hard time paying down your debts, you experience stress in your life.

Financial Problems

• If you took out a large student loan for more money than you needed, but you can't find a suitable job that matches what you majored in, you may take a low-paying job and struggle with repaying that loan. If you maxed out all three of your credit cards and then you lost your job, you experience stress because of the inability to pay down the balances.

Family Problems

• The reliance on credit can also cause problems in the home. When you and your spouse plan the family budget and one of you secretly overuses the credit cards and fails to communicate the action, a feeling of betrayal regarding finances develops. When you spoil your teenagers by charging what they want on credit cards, they don't learn the importance of saving and earning money.

Considerations

• College students make several mistakes that keep them in debt for a long time. These mistakes include not knowing how to budget properly, ignorance of the costs related to college, extended stays at college and not finding alternatives to credit, such as scholarships and part-time jobs.