These days there is so much credit around that people live continually on the edge. It is becoming quite alarming how many familes live on their credit card and continue to pay the minimum payments each month to keep their heads above water…
The real problems begin when there is a slight dent in the family unit, when perhaps someone loses their job, or there is an unexpected purchase or perhaps an illness that there is no insurane to cover. The moment that you adjust the delicate financial balance of a modern day family’s income there is bound to be trouble.
There is more trouble where this is concerned because those who live their lives like this cannot remember how to do anything else. The credit card can become their life and they work to pay the minimum amount each month. Now, when something like what i mentioned earlier happens, like the loss of a job or an expensive purchase is required, what these families often do is apply for credit and over estimate their earnings and expenditure in order to obtain it. This is simply ridiculous and living beyond what they can actually afford.
There are quite literally billions of pounds owed by people like this to credit card companies, and yet the credit companies will continue to allow people to spend money in this way. My conclusion is that they cannot seriously be losing that much money from these people who fail to pay their bills; you could never bankrupt a credit card company!
Watch out for your spending folks and try not to become a slave to the credit card.