For most of us, mounting credit card debt is a problem that we are constantly struggling with. Although each of us has unique circumstances that have led to these debt problems, there are many common reasons why we find ourselves in this predicament.

Educate yourself on the top 6 reasons for credit card debt, and watch out for topics that may affect you:

1. Less Income, More Expenses: Reduced salaries, layoffs, and rising inflation and home costs are a leading contributor to credit card debt. If your income has changed significantly, make sure that you alter your monthly expenses and lifestyle accordingly to prevent reliance on credit cards to stay afloat.
2. Saving little or not at all: As a general rule of thumb, you should always try to maintain enough savings to cover 3 – 6 months of living expenses in case of emergency. That way, if you do find yourself suddenly without work, you have enough savings to keep the lights on until you can find another position.
3. Divorce: Attorney fees, division of assets between you and your spouse, and alimony payments are an easy way to rack up a large amount of debt. Keep a close eye on any accounts your ex-spouse has committed to pay off as part of the settlement as well. There are many horror stories out there concerning one person’s failure to pay off an agreed upon account, leading to major debt problems and poor credit ratings for the other party, who may still have their name on the account.
4. Poor Money Management: Failure to accurately budget and track monthly income and expenses can often put people behind on their credit card debt without even knowing it. Many of us also live well beyond our means, living a lifestyle that exceeds our income and savings. Make sure you know exactly how much is coming in and going out each month, and that credit cards are not being used to make up the difference.
5. Big Medical Expenses: Costs for medical care and subscriptions are rising every year, and government assistance for such expenses is simultaneously decreasing. Medical care is one item you cannot go without when you have a medical emergency. Again, having an emergency savings fund will eliminate the need to use credit cards for any medical concerns that arise.
6. Financial Ignorance: Many of us do not understand some of the financial terms and processes we agree to when receiving credit. Before we know it, we are drowning in late fees and other charges that we didn’t even know were a possibility. Make sure to educate yourself on some common terms used within the credit industry and protect yourself from the fine print

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