Credit card debt may seem insurmountable, but the causes are often simple ones

In part one of this series, we examined a few of the most common reasons why many Americans are overwhelmed by credit card debt. In part 2 of this series, we will examine the remainder of the top ten reasons why many people are burdened with a debt that they cannot seem to repay.

5. Medical expenses. The health insurance system in this country is a mess, and an entire Website could be dedicated to finding solutions to the problem. The bottom line is this - Americans who have health insurance have it because they work for someone who is kind enough to buy it for them. Everyone else is out of luck. And if you have ever had to pay for skin cancer removal or a colonoscopy with a credit card, you know that the experience can be as painful as the medical procedure itself. Until Congress can work out some sort of fair and equitable system for health insurance for everyone, medical expenses and credit card debt will always be intertwined.

6. Inability to talk with spouse about money. Many American households have two wage earners who aren’t well versed in talking about money. Not only should a husband and wife be able to talk about money in order to effectively manage it, they also need to have a common goal and not work against each other. If one is frugal and the other is buying every item advertised on the Home Shopping Network, the household will have a problem, and a big one. Communication is key.

7. Waiting for the lottery. Some people just don’t worry about tomorrow, thinking that, one way or another, it will take care of itself. Perhaps they will win the lottery, or the Publisher’s Clearinghouse sweepstakes, or perhaps they’ll find oil in the back yard or inherit a bunch of money from Aunt Elsa. Don’t count on what you don’t have. Don’t spend tomorrow’s money today.

8. Lack of knowledge. A big component of money management is understanding how financial transactions work. Many people don’t even learn how to write a check in school;, it’s no surprise that they don’t learn about mutual funds, savings accounts or IRAs, either. Knowledge is power. If you don’t know how financial transactions work, buy a book.

9. Less job than they need. Having a part time job and spending like you have a full time job is a problem. Until your salary catches up with your spending, you’re spending too much. It’s that simple.

10. Gambling. The ease of Internet gambling, legal or not, makes it way too easy to blow hundreds or thousands of dollars from home. Many people have lost everything this way - job, house, spouse, car. It’s not only a quick path to debt, but it’s also a quick path to personal bankruptcy.

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