“Consumers own worst enemy with credit cards”

Credit card companies are continuously under fire for the billions of dollars of credit card debt. High interest rates and hefty fees certainly play a role in the ever-increasing amount of consumer credit. But consumers, too, share some responsibility for the situation.

Athens Banner-Herald journalist, Archie Carroll writes,

“We can blame the credit card companies, and they certainly bear responsibility for their questionable practices. But insatiable and uncontrolled consumer spending is what enables these companies to have power over us. Simply put, as a society and individually, too many people spend more than they earn, and it has gotten out of control.”

Spending more than you make is one of the top spending habits that lead to debt. It wouldn’t matter if credit card companies charged 49% interest rates and $75 late fees, if consumers didn’t have the credit card debt, high interest rates and fees wouldn’t matter.

What’s the fix? Carroll suggests you live beneath your means and stop trying to mimic the lives of celebrities.

"…we need to adopt the approach of the "downshifters" to get out of the trap. The downshifters are those who have taken up voluntary simplicity as they strive for more responsible lives."

Learning to decipher your needs from your wants and understanding what you can and cannot afford with your income will go a long way to reduce your debt load.

Further Reading:

• Article: Consumers own worst enemy with credit cards
• Do's and Don'ts Of Using Credit Cards
• How To Stop Using Your Credit Cards