Diana used to come to work with bags around her eyes. Her co-workers would always ask her if she was alright, and if everything was okay at home. Diana was tired of being sick, and she was also tired of people asking questions about her personal life. Diana had many sleepless nights, and it was now showing on her face.
There were a number of things that were contributing to Diana’s sleepless nights. Problems at work and home were among those issues. She was also struggling with credit card debt. Diana had managed to accumulate a credit-card balance of more than $10,000.
Diana had a good credit score and a good-paying job, so she did not expect to end up in credit-card debt. She had used her credit card to pay for a getaway with her husband to the Caribbean. As readers of the Financial Independence Hub know, using a credit card as a borrowing tool can lead to trouble quickly.
Diana believed she could pay off the debt before interest was charged to the card. However, a crisis happened and she had to cover an unexpected dental expense and a leak. Diana’s expensed trip to the Caribbean caused her to carry a credit-card balance that she was now struggling to pay off.
Diana was now living the personal finance nightmare: stuck in high-interest credit-card debt.
Diana’s new debt made life extremely difficult. She felt like she was in a sinking boat with no lifeline. She was feeling out-of-control, stressed and anxious. Diana struggled to budget in the minimum payments every month, but they never seemed to make a dent on the balance.
It is easy to understand Diana’s predicament when you take a look at the math involved.