Why do so many people end up with crazy credit card debt… Is it poor choices or bad luck?

Credit Card
1

I keep wondering how folks get into such massive credit card debt. I get that sometimes things happen, but is that really the main reason?

Okay, some reasons make sense:

  1. Big medical emergencies
  2. Expensive home repairs (plumbing, fire damage, etc.)
  3. Car trouble that has to be fixed

But a lot of people aren’t dealing with those situations. Some things I’ve heard are:

  1. Risky investments
  2. Car loans with crazy interest rates
  3. Spending on home upgrades that aren’t needed
  4. Not being able to control spending
  5. Travel and vacations

I don’t want to judge anyone, I’m just curious… How does someone get over $100k in credit card debt? Doesn’t hitting $10k or $20k make you rethink your spending?

2

We have around $40k in credit card debt because we had to rely on it during the lockdowns. I run a small business, and my husband’s a student. My income took a big hit during 2021.

3

Firth said:
We have around $40k in credit card debt because we had to rely on it during the lockdowns. I run a small business, and my husband’s a student. My income took a big hit during 2021.

Same thing here. I used credit cards to keep my business afloat during the pandemic, but then a major client went bankrupt, and it left me with $50k in debt.

4

Being poor is expensive.

5

Sam said:
Being poor is expensive.

You said it!

6

Sam said:
Being poor is expensive.

Not managing money properly is expensive too.

7

Blake said:

Sam said:
Being poor is expensive.

Not managing money properly is expensive too.

Yeah, but life’s expensive.

8

Blake said:

Sam said:
Being poor is expensive.

Not managing money properly is expensive too.

I love how people get downvoted for saying that managing money is important. Folks really don’t want to hear the truth.

9

It adds up fast. One day it’s a dental emergency, next it’s car repairs. You need your car to make money, right? Then your kid needs clothes, heating costs go up, groceries get more expensive… but your pay stays the same.

10

@Nevin
Honestly, I feel you. Everything’s more expensive, but wages haven’t moved much.

11

There’s not enough financial education out there.

12

Mal said:
There’s not enough financial education out there.

Exactly. I didn’t know how credit card interest worked at first. I thought I could just pay small amounts every month, and that would be it. Didn’t realize how fast the interest piles up.

13

@Remy
Same here. My parents never taught me about money either. I learned the hard way.

14

Mal said:
There’s not enough financial education out there.

I’ve met plenty of adults who still don’t know how credit works. It’s pretty common.

15

If you stop blaming individuals and look at the bigger picture… housing, education, healthcare—all super expensive now. Wages haven’t really gone up. Debt becomes inevitable for many.

16

For me, it was lack of financial knowledge, rising prices, ADHD, and impulsive shopping. I’ve learned from my mistakes and stopped using credit. These companies target people like me.

17

Darby said:
For me, it was lack of financial knowledge, rising prices, ADHD, and impulsive shopping. I’ve learned from my mistakes and stopped using credit. These companies target people like me.

ADHD is rough. I racked up $2k but managed to bring it down to $600 before the interest kicked in.

18

@Blake
I hit $15k at one point. Slowly bringing it down.

19

Darby said:
For me, it was lack of financial knowledge, rising prices, ADHD, and impulsive shopping. I’ve learned from my mistakes and stopped using credit. These companies target people like me.

I also have ADHD. One trick that helped was putting things in my cart, waiting 24 hours, and then deciding if it was worth it. If not, I’d transfer the money to savings instead.

20

@Riley
That’s a great idea. I’m getting better at controlling my spending too.