Biggest Reasons You’re In Debt is must read article for all. Money and financial matter plays vital role in our life. Major reason for debt is lack of proper financial management. Read some important tips about why you are in debt.
Despite of lots of earning opportunities, various sources of income available and thousands of earning avenues opens us for entrepreneurs or salaried people, to earn the money has become more easier in compare of past.
Expanding economy, availability of larger market, various opportunities created by internet and phenomenal growth of E-commerce are name of some of the factors which has created handsome earning opportunity to all, irrespective of class, community & gender.
But, despite of more earning opportunities and more earning power still debt is major area of great concern for almost all. From very low level laborers to biggest business tycoons are found in the trap of debt. No, doubt there are many kinds of debt and the types of debt are differ from person to person. Like, laborers are almost found in the personal debt whereas business man are too found in debt but their debt are almost business related or rather we can say their debt are for their business whereas personally it does not affect their personal life. Whereas laborers are found in personal debt and they are always on the high risk zone.
So, for throwing the light on the subject we have discussed it from the various angles and found few most common or major reasons why people are in debts. We do understand that the exclusive list cannot be prepared, because, most of us have different reasons for debts and reasons cannot be generalized but still we have tried to find out some most common or you can say very basic reasons of it.
So, for those who are interested in the topic, here, we have mention some of the points regarding the subject which throws light on the Reasons of Debt.
1. LACK OF SPENDING PLAN
Lack of proper spending plan is one of the major reason of debt among people. It is commonly found among people that whenever they see something new immediately buying that thing becomes major focus of their life. Worst part of the game, many a times it is found the things which and buying of it has become focal point of life has hardly anything to do with it utility feature, it is just plain design, look or cool creation of that product compel people to buy that things.
Initially or for few days it seems very valid reason for buying but when the person realize that the things which has been bought has hardly and utility feature creates unnecessary burden on their financial front and many a times it leads towards debt.
So, for avoiding this intact spending plan should be the need of the hour, not a single product should be bought which is not included in spending plan.
2. COMPARISON WITH OTHERS
Our constant comparison with our neighbors, our relatives, our friends and our colleagues is another major reason of having debt in our financial life. Whenever we see our neighbor has bought something new, due to jealousy or due to show off immediately we tries to bought that thing in our home or life. It is constant comparison of our life with others push us to do many things which may not be affordable or which is not preferable for time being, but to show the world or to all the concern person we bought that things no matter whether we have money or not? And this scenario certainly lead us towards the debt.
So, for avoiding this, before buying anything understand the reason behind it, is it really useful to bought it? If answer comes ‘NO’ simply avoid it.
3. TOO MUCH USAGE OF CREDIT CARD
There are so many articles are written on the subject, so there is no need for the specific explanations about the subject but in nutshell, usage of the credit card without too much consideration, or impulsively always leads towards disastrous consequences of it. Because credit card is such a luxury that when buying with it gives you all the comfort of life but when the time of payment comes the lovely luxury simply transformed in nightmare and every single passing day adds additional pressure on the user.
So, for paying the due amount of credit card another credit generated and that way the vicious circle starts and day after day it enlarges until it completely suck the person under the trap of debt.
So, for avoiding the trap of the debt control in the usage of credit card must become top most priority.
4. NOT ENOUGH INCOME
Lack of enough income to maintain the livelihood is also one of the reason for debt. Many a times it is found that person has all the financial discipline, he/she hardly spends anything impulsively, keep complete control on credit card spending, avoid all the unnecessary spending habits and despite of all still he/she founds on debt.
And if you closely look at the life of these type of misfortune soul the first thing you notice is that their current income level is far more less than their expenses and the wider gap between both of them compel them to owe debt and no payment of debt on time creates more debt and that way the circle keep increasing and one point of time it seems quite impossible or difficult to come out from that chain so debt becomes essential part of life and harsh reality of life, to escape from it becomes almost impossible task.
So, insufficient income is also one of the reason for debt.
5. UNEXPECTED YET VERY MUCH ESSENTIAL MEDICAL COST
Health related issues, medical illness, frequent occurring diseases are some of the most common reason found among heavy debt ridden people. No matter how much health freak we may be, no matter how much health conscious we may be, no matter how much we take care of our health despite of all the precautionary measure many a times we found our self under some minor to major illness.
If it is minor health related issue no problem but if it is major one and in extreme case if it is serious, critical or in medical terms severe, than to cure it, seems almost impossible without having trunk of money in your disposal.
People without having proper medical insurance or without having enough saving certainly finds it difficult to cope with this heavy financial burden and to cope with it on immediate ground to owe debt seems only logical ways.
So, unexpected but very much essential medical expenses is also one of the reason for debt in peoples life.
No matter what we say, no matter how much hard we try, no matter how much we keep control on our financial spending there are some certain circumstances in our life which hardly leaves any way for us to escape from financial spending or debt.
So, many a times in life debt becomes more or less essential because of circumstances like medical emergencies or major illness, so for the circumstances like this there is nothing wrong to owe a debt, but if the debt is owe for some useless or nonessential purpose like whenever any new model of particular car launches in the market, without having any financial consideration to buy it with borrowed money should be avoided at any cost and anyhow.
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