15 dangers of credit card debt

Credit Cards

We all struggle from financial issues in our lives. Thanks to the banking institutions for introducing credit cards and debits cards, which have made our lives easier. Hadn’t it been for these financial tools, the world would have never experienced fast money withdraw and payment option. However, just as credit and debit cards continue to provide several benefits, there are many downfalls too. In this article, we will take you through 10 dangers of credit card debt. People immediately register for a credit card as soon as they open their bank accounts, but fail to realize the pitfalls which come as part and parcel. People continue to splurge in the pursuit of paying off at the month end but accumulate a lot of debt more than they expect. Some of the dangers of credit card debt are:

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1.     Debt deteriorates personal relationships

This is perhaps one of the most concrete reasons why debt is so notorious. Many couples start having a very tough time when debt becomes an issue. Most households don’t have a planned spending pattern which is why they run into troubles at the month-end. As soon as the credit card debt starts accumulating at the month-end, couples start having financial issues and engage in a verbal spat. Some marriages even suffer and eventually come to an end when one of the partners fail to understand the need to spend wisely.

2.     Debt is convenient

The truth about a credit card is that it is a seductive splurging option. With a little plastic card in hand, you are constantly driven to spend more than you can. Less effort is involved when it comes to using a credit card to make a concrete purchase. As with cash in hand, one can make his/her mind to spend wisely. However, with a credit card, the drive to spend more becomes a habit. Most people overspend with credit cards which increases their debt every month. You will be surprised to know more than 30% of people underestimate their credit card debt when asked.

3.     Debt comes with interest

Debit cards and credit cards come with a high rate of interest which is an extra cost. This means credit card users will have to spend a significant amount of money on their monthly spending. Interest is anyways an issue because people take it lightly and overlook its payment at month-end. A simple example is if the bank has a 10% interest rate on credit card and you make purchases worth $1000, you will have to pay $100 extra as the interest amount.

4.     Debt affects the credit score

Credit utilization is the most important factor which is used to calculate a person’s credit score. If you don’t know what it is, the credit score is a person’s outstanding balance which is relative to the credit limit. A person who has a good credit score is entitled to many benefits from the banking institutions. Such people get coupon codes, discounts and have to pay a discounted amount of interest. So if you have a high level of card debt, it will affect your credit score to a great extent. Furthermore, it will also limit your access to make large financial purchases In the future.

5.     Debt comes with fees

This is another major issue with credit card debts. Apart from the hefty amounts of interest which one has to pay, credit cards have their fees. The first example is of the annual fees which have nothing to do with the spending pattern or the accumulated debt. Other examples include the monthly deductions, transactional fees, late balance transfer fees, etc. Sometimes these annual charges are way more than what one expects.

6.     Debt causes stress

Mental health is yet another stigmatized issue of the society which isn’t discussed much. People who suffer from anxiety and depression are often struck with financial issues. Many people die from strokes every year because they accumulate a lot of stress because of the finances. Debt is anyways stressed, which cannot be shrugged off easily. Stress, in turn, suppresses the immune system and causes rise to many infectious diseases. In fact, stress is so toxic it can give birth to several deadly diseases in the long run.

7.     Debt affects savings

People who work on conventional 8-hour jobs have restrained goals to lie in terms of saving and spending. Debt is an issue which curtails and cuts down those goals easily. Just as much as one spends with a credit card in hand, debt, on the other hand, kills savings every month. People who plan to make own house, buy a second car, spend on va, ation etc., often get affected because of credit card debt in the long run. Thus, it is difficult to save for long run with a plastic card in hand in the short run.

8.     Debt grows too fast

This is what we don’t realize when we’re purchasing with a credit card. Other forms of debt include borrowing money for building a house, taking short term loans and borrowing money from friends and family members. The nature of these debts is they don’t grow too fast and often come with no interest rate at all. However, with a credit card, the debt grows very fast and surpasses all the limits which one sets. Many people get involved in notorious situations when they have a lot of debt on their heads.

9.     Missed credit card payment is another debt

Credit card payments should be made on time otherwise they can become macro issues in the long run. Furthermore when you don’t make your credit card purchase on time, not only does the debt continues to accumulate but it equally affects the credit score to a great extent. In this way, the banking institutions limit the spending amount, and one has to forcefully change important decisions to spend on so and so product or service.

10. Credit card debt decreases wages

If your salary is directly transferred to your account on a specific date and the bank deducts the debt from that account, you won’t have the option of saving money and paying off in installments. This means you will have little to spend the next month. Furthermore, if you don’t pay off your debts on time, the creditors can sue you, causing even more problems. It is no wonder credit card debt garnishes wages and disturbs a person’s monthly spending circle.

11. You don’t have a safety net

If you’re working under a firm, there is always a chance of getting fired because of any reasons. With tough economic situation around the globe and digital media replacing people every day, there is no job security as such. Long term savings or the investment in a different place is a safety net. This means if you continue to spend all your salary in paying off monthly debts, you won’t be having a safety net to lean on in the long run. The situation will get even more intense in case you lose your job and have nothing to survive on.

12. Debt affects physical health

As already discussed, debt can take a big toll on a person health. Furthermore when a person has so much to pay off in a month, the drive to earn more is a constant thought in the head. People who are guarded with debts have to work twice harder than average adults. In the pursuit of earning more money, people cut down on social ties and overlook exercise. Physical health is the most important part of a person’s life which should not be overlooked. This means a person can get engaged in obesity, anxiety, heart stroke and breathing difficulties along with several other diseases.

13. Credit card debt gives rise to criminal activities

As the world goes on, criminal activities continue to rise every single day. In most criminal cases, when people are asked they complain of having financial issues. People who are unable to make up for debts have to rely on criminal activities such as stealing money, bank robbery, kidnapping, shoplifting, etc. Therefore there is no escape from the fact; credit card debt is a big institution of criminal activities in the long run. In the US alone, millions of people engage in criminal activities ever year just because they’re struggling with family issues.

14. Credit card debt affects children’s education

A working father and mother, both have to make sure they’re paying for their children’s education every month. However, if they have a lot of debt clogged on their heads, it will be even more difficult to do it. Suppose if you have a lot of credit card debt to pay and have fewer savings to pay for your kid’s monthly education fee and continue to postpone payment, your kids might be withdrawn from their schools. Thus credit card debt can affect the future of your children. Credit card debt is a toxic element which brings many problems in life.

15. Credit card debt can make you bankrupt

This is another issue with credit card debt. After having a lot of credit debt flocked on your shoulders, you can go bankrupt easily. If you want help with the issue of reducing debt you can get a bankruptcy lawyer in town. Suppose if you google Sacramento Bankruptcy Lawyer, you will be provided with a list of all the lawyers in that city. Getting bankrupt is very dangerous, but one can always find help after getting in touch with a suitable attorney.


The tough thing about a credit card is that it can compel some people to spend as much as they can. However, millions of people continue to get fooled by the thoughts of spending more and get engaged in a lot of troubles in the long run. Credit card debt is as bad any other debt in the world. Therefore it is better to keep away from it and spend wisely in the long run.

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