A new study has dispelled an old myth.
Many Americans who fall behind on their bills – specifically, their credit cards – aren’t wild spenders who live only in the moment and don’t care about their future. They’re actually responsible adults who don’t want to disappoint friends and family by admitting they can’t take care of their loved ones’ needs.
This was the biggest revelation (although certainly not the only one) from a survey of 1,005 U.S. adults conducted by Consolidated Credit, one of the nation’s largest and oldest nonprofit credit counseling agencies.
Where credit is due
First off, Consolidated Credit confirmed what prior research has shown: credit card debt is the most common form of personal debt in the country. Nearly 8 in 10 respondents are carrying credit balances they can’t pay off. Fully 30% say their balances total $10,000 or more.
The fascinating part is how they deal with that debt. “More notably, a significant portion of respondents indicate they would only seek help as a last resort or not at all,” Consolidated Credit reported.
There are, of course, two explanations for this…
- They don’t care. They’re ignoring the problem because they can’t be bothered.
- They’re embarrassed. They feel like failures. Nothing and no one can help them.
Here’s how we know almost half of indebted Americans fall into that second category: “4 in 10 of those who have credit card debt said they have taken the step to speak with a credit counselor.”
Actually, it’s 42% who have called a nonprofit credit counseling agency to receive a free debt analysis. Of those, 39% have enrolled in a Debt Management Program. A DMP can reduce total credit card payments by up to 50%. It’s perhaps the oldest and most popular debt-busting program that few folks know about.
So this raises a rhetorical question: Who calls a credit counselor if they just don’t care?
It’s never too late
Of course, it’s also possible there’s a third explanation. To quote from war movies and horror films: “Save yourself! It’s too late for me!”
Consolidated Credit’s results show that isn’t true. The nonprofit has helped over 10.2 million people since opening its doors in 1993. Since then, no credit card balance was too big to tackle, whether it was $20,000 or $40,000 or even $60,000.
If you see yourself in any of these survey results, you need to call a nonprofit credit counseling agency today.
