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What does psychology say about my credit card debt habit?

Credit cards are valuable and useful when we use them responsibly. They can provide a first line of defense against an emergency financial need. They offer us convenience when making online purchases, and they allow us to skip carrying cash when we're out on the town. Nevertheless, according to one psychologist, credit cards are dangerous psychologically.

Apparently, psychological research has shown that credit cards stimulate people to overspend. In fact, people are willing to pay more for the same thing if they use a credit card instead of cash. This means that if you were shopping at Target and saw a t-shirt you liked, you might be willing to pay $15 with it if you were paying with cash, but if you were paying with a credit card, you're suddenly willing to pay $20. This psychological "trick" allows retailers to make more money when they encourage you to pay with a credit card. Simultaneously, it also allows credit card companies to make more money by charging interest on the borrowed money you used to make your purchase.

Of course, there's also the fact that everybody in modern society wants things "now, now, now." And a credit card is our ticket to "now, now, now." Instead of needing to carefully and responsibly save for several months and then purchase a new cellphone, consumers can buy the cellphone with borrowed money and get it now without the wait.

Sounds perfect, right? Not so fast. This habit creates a slippery slope that puts consumers -- no matter how much money they make -- at risk of borrowing further and further into the future until their credit card debt gets so bad that they can't ever seem to tackle it.

If you're in a difficult credit card debt situation, you might want to imagine what it would be like to wipe out your debt quickly and effectively through the bankruptcy process. Visit our website now to learn more about whether you can qualify to dissolve your credit card debt through Chapter 7 or Chapter 13 bankruptcy proceedings.

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