Credit cards are one of the easiest ways to fall into the debt trap in Singapore. There aren’t many hurdles to getting your hands on a credit card, and with the rise of online shopping, people may not be keeping track of their expenses. Additionally, with the multitude of rewards and cashbacks, it becomes easy to overspend first, and then regret later when the bill comes in.
In some cases it may not even be the main card holder who is racking up the debt. Supplementary credit cards, which are usually issued to the spouse or children of the main card holder, may actually be the source of the debt. Here are some reasons why people get into spiralling credit card debt and why they should seek help from a debt consultancy service.
Why Do People Get Into Spiralling Credit Card Debt?
Supplementary card holders who find themselves in credit card debt are in a difficult position. While the debt was incurred by them, it is the main card holder who is principally responsible for paying it off. Rather than letting the main card holder know, many often try to hide the accrued debts, allowing it to snowball.
Without cash for monthly repayments, they end up continuing to use the credit card for daily necessities which only results in a cycle of increasing debt.
Why Do Supplementary Card Holders Keep Debt From The Main Card Holder?
Supplementary card holders generally have a special relationship with the main card holder and are usually trusted to make sound financial decisions in return for enjoying the benefits of the credit card. As such, when supplementary card holders incur debts, they might be unwilling to come clean so as to avoid ruining the relationship with the main card holder.
Money, and especially mismanagement of money, can be a source of conflict. Supplementary card holders in debt might shy away from this conflict and attempt to settle the outstanding debt on their own. Without the right resources, the outstanding amount will only increase every month, leaving them unable to pay their credit card debts in Singapore and falling further into debt trap.
How Debt Consultancy Services Can Help
Once a supplementary card holder is in debt, there are only two ways to move forward. Either they can hide from the problem and let it snowball past the point of no return, or they can bite the bullet, come clean, and resolve the debt. This latter option is where debt consultancy services like Debt Aid come into play.
Learn More: 3 Good Reasons To Get Help From A Debt Consultant
Debt consultancy services help you take ownership of your debts. Falling into a debt trap can be extremely stressful and make a person feel helpless. As experts in debt management, Debt Aid can offer invaluable advice and provide the right kind of support for individuals drowning in credit card bills.
Beyond coming up with repayment plans to pay down the loan amount, Debt Aid also offers emotional support to clients. We understand the mental strain of being in debt and recognise that any solution must be holistic in its approach. We help individuals who have racked up debt on their supplementary credit cards, to come clean to their families so they can begin the process of clearing up their loans.
With over 1,000 cases resolved and more than $15 million worth of debt reduced, Debt Aid prides itself on offering excellent, discreet services for our clients. Contact us today for a free no-obligation consultation where we will seek to understand your situation and offer solutions that can help pave a way forward.