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Credit card debt is often not a result of careless habits

A recent study was undertaken to discover what may lead people to carry over balances on their bank cards from month-to-month. The two types of demographics used for the study, those with credit card debt and those without, were composed of middle and lower-income card holders. The researchers were surprised by some information regarding revolving debt. Washington residents may also be interested in what the study revealed.

The recent information seems to indicate that those who have credit card balances are not less responsible in their spending than those who pay off their balances every month. In fact, higher education levels appear to be a factor. A second possible indication that a family may be supporting card debt is the monetary costs they may have been dealing with through life circumstances. Loss of employment or lack of medical insurance are two factors that -- understandably -- play a role in the accumulation of debt.

A family with growing children may have more debt to worry about. Two other differences between the groups concerned the amount each had in savings and the value of their home as compared to the amount of the mortgage. Moreover, some people actually think differently about spending decisions due to brain function.

In the recent past, the number of people seriously delinquent and/or overwhelmed by credit card debt was dropping steadily. However, the most recent figures have reported a rise in the levels of consumer debt. Some financial experts believe it may be a sign that consumers are again being shackled by mounting debt. Washington residents who are already struggling with unsustainable debt may seek to educate themselves on how a bankruptcy filing may enable them to obtain a measure of peace and financial security once again.

Source: Fox Business, "Credit Card Debt Not a Sign of Irresponsibility", Peter Andrew, July 9, 2014

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