Home improvement, personal debt and business debt are all different things, but they also come under the same umbrella with services debt. Essentially, most of these different topics come under a service that was purchased by a customer, and because the payments had become difficult to pay month by month, the overall credit card debt almost driven the customer to default.
It’s very easy to fall under more than just one of these CCD debts. Unfortunately, it happens to more than it should throughout the years. There will always be someone who cannot make the payments they originally believed they could, and it ends up in the credit card company having to chase debts that should be unavoidable for the most part.
This is not necessarily the worst aspect of this, however. The overall worrying theme of the of credit card debts is the potential loss outside of money itself. The loss of assets, the loss of businesses or even homelessness if you delve too far into debt. This is a more common situation than you may believe. Especially for those who have never experienced credit card debt.
Essentially, services get more people into credit card debt than products, as products have a resale value (for the most part). With services, there is no refund policy, or a way to try and recoup any past spend. You simply use the service, and you pay for it.
There is also not much you can do to negotiate yourself out of debt. But with service debt, you can usually negotiate better terms with your credit card owner. This will usually involve shutting your credit card down completely while repayments are made, but they also will not look to seize. This is the best chance that you will have to clear your debt and minimize any potential financial damages.