irst-time home buyers forget to budget for such expenses and end up stretching their finances to the limits. And what about larger repairs? Replacing a roof typically costs more than $7,000, while plumbers charge about $125 per hour and electricians $100 or more per hour.
- Vacation expenses. Believe it or not, higher income earners in the $75,000 plus bracket are more likely to carry credit card balances than lower income earners, citing vacations and home repairs as the leading contributors to their debt. That’s because high income earners tend to have higher credit limits, multiplying opportunities to overspend. And while everyone deserves a respite from the pressures of work life, we can’t all enjoy private yachts and caviar – there are plenty of shoestring travel options out there and vacations to suit every budget.
- Car repairs and maintenance. The economics of owning a car are more complex than monthly auto loan and car insurance payments. Before purchasing a car, people should also budget for gas, registration and parking fees, and maintenance and repairs. While a routine oil change costs about $50, the cost to repair or replace certain engine parts can bring about financial disaster – consider the cost to replace the transmission at $4,000 to $5,000.
- Interest charges. An oft overlooked cost of credit card usage, interest adds up. US households pay an average of about $1,300 in interest charges per year. If Americans are struggling to cover their monthly bills, interest only makes their situation more precarious.
Of course, there are many other sources of credit card debt, including divorce, unexpected business costs, identity theft, unhealthy behaviors such as gambling, and taxes. Whatever the cause, there is no need to feel ashamed about credit card debt.
If you are like many Americans who are struggling to pay off their credit card debt, New Era Debt Solutions may be able to provide you relief. We’re a debt settlement company that helps people dramatically reduce their debt obligation and become debt free.
To see if debt settlement is the right option for you, please contact us or fill out our form on this page for your free debt analysis.