The 5 Leading Causes of Credit Card Debt

Written By Aaron Sarentino
Apr 4, 2018
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What Causes Credit Debt? Americans have amassed more than $1 trillion in outstanding credit card debt – a record high, according to the Federal Reserve. In its annual State of Credit study, Experian reports the average American credit card debt is a staggering $6,354. What leads to such a high amount of debt?

  1. Overspending. As the economy has steadily improved since the Great Recession of 2008, consumers are more comfortable spending. Many turn to credit cards for things like vacations, shopping with store credit cards, and daily living expenses, feeling confident that they’ll be able to repay the balance. Check out our article about the consumer debt in US and the credit card overspending facts. Learn more about inflation and credit card debt in our article.
  2. Lack of an emergency fund. Unexpected expenses, like a home or car repair, can break the bank. A pay cut, job loss or temporary disability can also lead to an income loss, which would be easier to survive with a financial safety net. However, without an emergency fund in place, many people have no choice but to turn to a credit card to cover these expenses.
  3. Medical expenses. The cost of medical care has increased over the years, with health insurance companies requiring patients to cover more expenses out of their pockets. For some, credit cards are the only way to fund expensive, but necessary medical procedures.
  4. Divorce. The average cost of divorce can be as high as $20,000 in some states, and many spouses must use a credit card to fund their split. On top of this, the financial strain that comes from losing an income can put a family or individual in a position where relying on a credit card is necessary.
  5. Making only the minimum payment. When interest is factored in, the minimum payment only lowers the outstanding credit card balance by a small amount each month. Continuing to make purchases while only paying the minimum worsens the problem and creates the perfect storm for credit card debt.

Adopting good financial habits, like budgeting and saving, not only helps you avoid more credit card debt, but also gives you the ability to pay off your current outstanding debt for good. How to get out of credit card debt? How does credit card debt work? If you have a huge debt burden and need a fast solution, Americor’s debt resolution program and credit card debt loan may be perfect for you.


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Americor provides debt solutions to thousands individuals and families all over the country. We’re a next-generation debt relief company with a proprietary platform designed to help clients get out of debt quickly. Together we’ll develop a strategy for you to enjoy a debt free lifestyle. Learn more about how Americor can help relieve the burdens of debt today.

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We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

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