A topic we have covered extensively is the topic of credit card debt. And for good reason - most Americans have tons of it from the nineteen debit and credit cards they carry in their wallet or purse. Credit cards are great tools, and it's useful to have them, but they represent a tremendous opportunity to fall into a deep hole that could easily lead to financial ruin.

The relatively high interest rates and the relatively low minimum payments make it easy to spend more money than you have available. In this two part article, we will outline the top ten reasons why people spend more money than they should with their credit cards.

1. Poor management of their money. This one seems obvious; you absolutely must keep tabs on how much you spend each and every month. Your Visa card with a $30,000 limit is not doesn't mean you can max it out if you only earn $20,000 per year. A little prudent thought needs to come into play. How much discretionary income do you have left after you pay your rent, car payment, grocery and utility bills? That number is the maximum you can afford to spend on your credit card. If you spend more than that, you're going to have a deficit. And at 20% or more per year, that can add up.

2. Lowered income. The last five years have been difficult for a lot of Americans as jobs have been outsourced and companies have reorganized. Many people are working longer hours for less pay. Some jobs, like computer administration, pay a fraction of the salary they did in the late 1990's. If you are in a situation where you are still working but earning less than before, you have to acknowledge that the amount you have to spend has been reduced, as well. A cut in salary necessarily means a cut in spending. And that is that.

3. Divorce. What used to be a single household with two paychecks may suddenly become two households with one paycheck each in time of divorce. Suddenly, all expenses are up and you may not have enough money to cover all of the immediate needs if you have to find a new apartment and put down deposits for phone, electricity and gas. With nearly half of all American marriages ending in divorce, this problem becomes a real one for many people who weren't expecting it.

4. Failure to save. Americans are saving at the lowest rate in history. The inability to put money away for later means that more and more people are turning to their Mastercard when an emergency strikes. The wise consumer will try to put away a small amount of money from each paycheck so that a nest egg will be available in case of emergency. It's far better to reach into your bank account when the car breaks down than it is to throw a $2000 transmission on your Discover card.

About the author:

Talbert Williams offers debt consolidation referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com