Credit card debt ranks among common money mistakes

A recently published article looks at common money management errors people make at different stages of life. For many in Tennessee, credit card debt is definitely on that list. Unsurprisingly, credit card debt was also featured in the recently published article.

People in their 20s are often just getting started in life, finishing school and beginning their career path. Once they begin earning a steady paycheck, it is not uncommon for them to spend their hard-earned money on frivolous things like entertainment and the latest electronics. Before long, their credit card balances become inflated, and they begin to struggle to cover their minimum monthly payments. Some respond by opening even more lines of credit, making matters worse.

People in their 30s are often still struggling to pay down student loans and existing credit card debt. At the same time, they may be taking on new responsibilities in regard to career or family. This can be a time of intense financial strain.

Lifestyle inflation often begins during middle age. People tend to spend the majority of their income, leaving little in savings to create a financial cushion. If a job loss or serious illness occurs, everything can come crashing down.

Regardless of age, one of the most important things for any Tennessee resident to understand is the need to reduce credit card debt. Carrying heavy debt loads leads to financial instability. Gaining control of credit card debt is one of the most powerful things an individual can do to take control of his or her finances.

Source: finance.yahoo.com, “These are the biggest money mistakes you can make at every age“, Rubina Ahmed-Haq, Nov. 16, 2017