Raise your hand if you splurged on something–anything–this summer.
You’re not alone. When the temperatures rise and summer vibes are in full force with your friends, your family, your kids, you want to be able to enjoy the moment and dive into the fun headfirst. And, you should be able to do this. You should feel comfortable and confident in your ability to splurge a little.
However, most Americans don’t feel that way. Their financial stress takes over and it prevents so many from enjoying their life the way they want to.
When this happens, credit card debt tends to be the first to rack up. And especially the last couple of years with a volatile market and uncertainty…
Can you relate?
Credit card debt trap
First, if you have credit card debt, please remember that you are not alone and this is really common. Second, you won’t be here forever so don’t be too hard on yourself. Third, there are ways to get guidance and help so you truly won’t ever feel alone.
Credit card debt can be a lurking concern that casts a shadow over your fun.
With the convenience and ease of credit cards, it’s all too easy to fall into the debt trap without even realizing it. The allure of buying now and paying later can lead to unchecked spending, especially during the summer months when opportunities for leisure and travel are plentiful.
Total credit card debt reached over $1 trillion for the first time this summer, according to an August report from the Federal Reserve Bank of New York. Credit card balances rose by $144 billion from June 2022 to the same time this year.
This just highlights the ease with which credit card debt can accumulate, often leaving individuals struggling to keep up with their payments.
Getting help is a good thing
Recognizing that credit card debt is becoming a concern is the first step toward reclaiming control over your financial situation. Seeking help from financial advisors or credit counseling services can be immensely beneficial. These experts can offer guidance on budgeting, debt consolidation, and negotiation with creditors to establish more manageable repayment plans. Moreover, understanding the terms of your credit cards and being aware of alternative financial tools like personal loans with lower interest rates can also assist in alleviating the burden of credit card debt.
You don’t have to do this alone. Just like how if your child needed surgery, you wouldn’t perform the surgery yourself and you’d rush to a hospital with professionals. Financial help is the exact same and you can trust a professional to help you get out of debt and stay out of debt.
When you get stuck in this debt trap, it can exact a heavy toll on your mental and emotional well-being. The constant worry about mounting debts can lead to increased stress, anxiety, and even depression. A study conducted by the American Psychological Association found that financial stress is a significant contributor to overall stress levels in the U.S., impacting both mental and physical health. This emotional strain can spill over into various aspects of life, including work productivity and focus.
This can then create a ripple effect that extends to your professional lives. The preoccupation with mounting bills and interest rates can leave little mental space for concentrating on tasks at work. A study published in the Journal of Applied Psychology revealed a strong connection between financial stress and reduced workplace performance. The inability to concentrate fully on work projects due to financial worries not only affects individual productivity but also contributes to a decrease in overall workplace efficiency.
Time to ditch summer’s credit card debt
Whether this summer was a culmination of the last year(s) or it was all new spending, credit card debt can feel like it is a never ending black hole you can’t seem to crawl out of.
Though seeking help and understanding your options can empower you to regain financial control. The emotional toll of credit card debt should not be underestimated, as it can impact your mental health and work performance. By taking proactive steps to address credit card debt, you can ensure that this summer’s adventures are not marred by financial stress.
Remember, if you find yourself struggling with credit card debt, you’re not alone, and there are resources available to support you on your journey to financial freedom.
TrueConnect is one of these resources. If your employer is not currently offering TrueConnect as part of your benefits package, share this with them so they can get it implemented. It’s a no-cost program and it is a quick, easy implementation.