What is Binge Debt?
Taking its name from binge eating and drinking, binge debt is a serious problem. Binge debt is the process of racking up huge amounts of debt in very little time using a variety of finance options. Statistics shows that women have the highest rates of this kind of spending, followed closely by senior citizens. Levels of spending among older people have reached higher levels than ever before. A survey reveals that one in four elderly people are racking up huge debts on their credit cards and have no intention of paying these debts back. Some credit companies have said that binge debt levels have reached epidemic proportions. The main reason for the high levels of debt seems to be easily obtainable finance options. Many people who binge debt have multiple credit cards. When one credit card comes close to the limit, they will simply open another account to help pay for the first one. Many people have been forced to take out loans on their homes after their habit has spiraled out of contro
Similar to binge drinking or eating, binge debt is the act of accumulating debt at an excessive rate with no way to repay it. Binge debt has become an epidemic in both the United States and Great Britain. Though few people realize that binge debt is as detrimental to their financial health as binge eating and drinking is to their physical health, consumers continue to rack up debt at alarming rates. Typically, binge debt occurs as a result of a learned spending habit. Consumers start out by purchasing items on credit and repaying only the minimum amount due on their bill. As their balance grows, their minimum payment increases and they become trapped in the vicious circle of repaying debt while still needing money for everyday expenses. The result is usually that an individual ends up owing more than a person could ever possibly expect to pay back, before spending thousands of dollars in interest and possibly even ruining their credit. Many people blame the credit industry for binge de
