Are Your Spending Habits Causing You Higher Debt?

It seems like 2022 saw price increases for many of life’s necessities. Everything from food, gasoline, automobiles, and housing costs have gone up considerably. Some areas of the U.S. were hit harder than others, but the facts are the same, it costs more today to live than it did just a couple of years ago. Many Americans find it hard to make ends meet.

American’s Credit Card Spending Habits:

Many people don’t feel the “pain” of spending if they use a credit card, that is until the billing statement comes.

Credit cards are one of the most popular forms of payment. But many people find it easier to overspend on credit cards. Here are some interesting statistics about credit card spending habits from UpgradedPoints.com.

• Most cash transactions come to around $22, most credit card transactions average around $57, more than double that of cash transactions.
• A study by the Sloan School of Management at MITsays people are more likely to buy something at a higher price, give larger tips and make more impulse buys when they are using a credit card.
• More and more stores, restaurants, and retail outlets are opting to go cash-free. This means there is a greater temptation to make additional and more costly purchases using a credit card than with cash.

What to do if you Find Yourself in Debt Because of Credit Card Use?

Many young people can often resist the urge to spend when they get their first credit card or two. The ability to have an immediate purchase needs to be met, rather than waiting until you can save the money can be very tempting.

Many spend beyond their means and then seek ways of getting out of their debt. Making minimum payments on those cards just prolongs the inevitable, paying the card off in full.

Debt Consolidation Loans, Are They a Good Option?

There are many good reasons to consider a debt consolidation loan.

• Streamlined finances: Instead of paying several different debts, all you have to do is pay one fee.
• Lower interest rates: If your credit score has improved, applying for a loan may reduce the interest rate, enabling you to save money over the life of the loan.
• Expedited payoffs: Because many debt consolidation loans accrue less interest, you may be able to pay extra on each statement, and pay off the debt faster than you could have without the consolidation loan.
• Better credit score: In many instances, a consolidation loan enables the individual to pay off their balance sooner and gain a higher credit score.

What are Some of the Best Loan Consolidation Companies?

In the past, individuals would have to meet with a banker, fill out numerous applications, and wait to see if their loan was approved. Today it is easier than ever. Numerous online options have easy to complete forms. The individual can learn in hours, in many cases, that their loan is approved.

Whether you choose the huge industry leaders or other companies like Symple Lending, you will find out all you need about the status of your loan quickly and easily. Take control of your finances this year with a consolidation loan.