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Where is all this credit card debt coming from?

On Behalf of | May 15, 2019 | Firm News

Avoiding debt may feel like an impossible dodging act. Whether taking out a loan to attend school or to purchase a vehicle for getting to work, Pennsylvania consumers might struggle to pay off their balances and debts. The problem is especially tricky when it comes to credit card debt. So what’s making it so difficult for people to pay off their credit cards?

Advertising is perhaps partly to blame for the meteoric rise in credit card debt. While ads and commercials have been around for plenty of other generations, millennials have to contend with a new world of advertising. No longer are ads relegated to commercial breaks and magazines, but they are now in social media feeds. An Allianz Life survey discovered that 25% of Gen Xers and 50% of millennials had unexpectedly spent money on something because they spotted it on social media.

Psychologist and author Elizabeth Lombardo thinks that advertising alone is not to blame. According to Lombardo, many people now focus on more instant satisfaction. She points to things like same or next-day delivery or grocery delivery services as examples of how consumers expect to be satisfied immediately. Many of these products and services have relatively low costs, but they can add up over time.

Of course credit card debt is not the only financial issue that people in Pennsylvania are struggling with, and social pressures are not the only reasons for debt. The cost of attending college has shot up by over 20% in just three decades and student loan delinquencies are also on the rise. No matter how a person ends up with more debt than they can handle, there are usually options for dealing with the matter. Both personal bankruptcy and debt management systems can be helpful for individuals who find themselves in this situation.