A fluctuating Louisiana economy in recent  years has caused many people to feel as though they’re struggling to keep their heads above water at times. For many, even the slightest change in finances is enough to land them in debt up to their ears. Others are able to avoid serious financial problems by paying close attention to the top causal factors of credit card debt; that way, if they notice signs of potential debt, they can make changes before their finances land them in a downward spiral.

As long as a person earns more income than the amount of money he or she is spending, there’s really not much to worry about where debt is concerned. However, many people not only spend more than they make, but they obtain additional credit cards when the ones they use regularly (to cover the expenditures beyond what their incomes can pay for) max out. Budgeting helps avoid such problems although many people live without budgets, which often leads to debt.

Another top cause of credit card debt is misunderstanding interest rates. Many cards carry penalties for late or missed payments; interest rates can increase and before a cardholder realizes it, the whole financial situation becomes unstable. If a person unexpectedly loses a job, and there’s no longer income generating to pay off credit card balances, it can be disastrous.

Credit card debt is definitely no small matter. Some people cut up their cards and cutback on spending until their debts are satisfied. For many Louisiana residents, however, situations have gone beyond the point where a few simple changes will do the trick to restore financial stability. In such cases, it often helps to seek consultation with an experienced debt relief attorney to explore other options.

Source: peopleof.oureverdaylife.com, “Main Reasons People Get in Credit Card Debt,” Sam Ashe-Edmunds, accessed Aug. 2, 2017