"People can feel a lot of shame about being in credit card debt. They think it means they're bad with money. That it's something to avoid, or a burden they can never pay off. But for financial educator Rita-Soledad Fernandez Paulino, founder of Wealth Para Todos, we should simply see debt for what it is. "It's just what we use when we don't have access to cash reserves." And unfortunately, our assumptions and emotions around debt can prevent us from managing our money with confidence,"
"Some people think that those with debt have a spending problem or don't know how to budget, says Fernandez Paulino. But that's often not the case. About 45% of respondents to a 2025 Bankrate survey said that their credit card debt came from emergencies or unexpected expenses. That includes car problems, medical bills and home repairs. People also rack up debt during stressful life events."
Many people feel shame about carrying credit card debt and assume it reflects poor money management. Credit card debt often arises from emergencies or unexpected expenses such as car repairs, medical bills and home repairs. Stressful life events, including bereavement and serious illness, can reduce work capacity and lead to debt accumulation. Emotional assumptions about debt can deter honest assessment of finances and prevent seeking support or leveraging debt strategically. Maintaining an emergency fund and creating a clear plan to pay down balances reduces the chance of falling back into debt after unforeseen expenses. Without reserves, people risk repeating debt cycles.
Read at www.npr.org
Unable to calculate read time
Collection
[
|
...
]