A majority of Americans possess a credit card, many once they first become eligible. While qualifying factors do exist, there are so many different types and varieties available that it isn’t very hard to find an agency willing to lend you a line of credit. However, while this may initially feel like a step in the right direction, far too often people end up owing much more than they can pay promptly. Credit card debt continues to grow for individuals across the country but what are the main causes for this inability to pay?

Colorado is one of the top US states with credit card debt. Healthcare, a general cost of living, the pandemic impact, and other issues are all contributing factors that influence debt in certain areas but these and a handful of other causes tend to lead the way in the accumulation of credit card debt. These events can often force individuals into the use of a particular card should they have enough of an available limit to cover one or more of these living expenses.

Medical Costs

Everyone is well aware of rising medical costs and the ongoing coronavirus pandemic has only highlighted these issues. Unfortunately, when families are faced with an unexpected medical bill they often turn to their credit cards to cover the costs to offset the financial burden that may come with paying once a bill comes due. 

Emergencies

Similarly, several other emergencies can arise putting individuals in the same predicament. Vehicle breakdowns, housing costs, or other life-altering circumstances can also put people in a place where they may need to use credit to cover immediate costs.

Education

The rising cost of education may also force the use of a credit cards. For books, housing, classes, etc. some people may choose to not use immediate funds. Instead, an attempt to delay the payments for these services by initially driving up a balance instead of paying them off as they arise can occur.

No Plan

Once debt begins to accumulate, not having a plan can lead to increased risks. Instead of focusing on the pay-off quantities, some will only contribute the minimum amounts due each month. Not only does this do little in terms of paying down what is owed, but often people end up spending much more than the initial item or service may have cost in the beginning.

Overspending (Food, Retail, Vacation)

Simple overspending has also caused many people to end up owing credit card companies. Emergencies aside, there are still those out there who attempt to live beyond their means. Just because you have available credit, doesn’t necessarily indicate it is in your best interest to use any or all of it for items that can either be paid for using another method or deemed non-essential.

Should you need help managing debt or paying off credit card bills then let the accounting professionals at Bloch Rothman and Associates assist you today. In addition to providing answers to your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top-quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history of helping clients with any of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also several bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!