The act of accumulating debt at an excessive rate with no way to repay it is referred to as Binge debt. In both the United States and Great Britain binge debt has become an epidemic. Though only few people realize the fact that binge debt is as detrimental to their financial health as binge eating and drinking is to their physical health, consumers continue to pile up debt at alarming rates.
Paying only minimum amount give rise to binge debt
Consumers start this by purchasing items on credit and repaying only the minimum amount that is due on their bill. As their balance grows, their minimum payment rise and they become trapped in the vicious circle of repaying debt while still they require money for everyday expenses. Usually the result of all this is that an individual ends up owing more than a person could ever possibly expect to pay back, before that he spend thousands of dollars in interest and possibly even ruining their credit.
People blame the credit industry for binge debt
For binge debt many people blame the credit industry,due to the reason that the credit industry extends more than a reasonable amount of credit to consumers, which enables them to become severely in debt. While it is true that the credit industry is nobody’s friend, but the real blame lies in poor spending habits.
Poor spending habits give are main cause of binge debt
While once it was a common practice to have only one credit card for the purpose of purchasing airline tickets, rental cars, or covering an emergency, but now most consumers are having two, three or more credit cards. As a result of binge debt, excessive balances on all their credit cards are carried by many people.
Change your spending habits
You can put an end to binge by changing your spending habits. If excessive consumer debt is being carried by, then you must find a way to change your spending habits and bring your balances under control. You should be in a position to save that money rather than wasting hundreds of dollars in interest each month. You can only be able to break the binge debt cycle when you stop spending and start repaying your debt.
Take assistance from debt management company or a financial advisor
If you are having problems in managing your credit and your monthly bills, then you might want to look into assistance from a debt management company or a financial advisor. There are also many experts by whom several books have been written about debt management and they offer excellent advice on changing spending habits.
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