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Surprising Reasons Why People Get In To Debt

One of the reasons why people seem to be having a hard time making it through financially, is because they are in debt. It is either from loans or from credit cards, or by simply borrowing money from people. A person who has these debts wouldn’t be free as long as they still owe money.

Why are most people in debt in the first place? If you have a decent job and you’re not exactly living from paycheck to paycheck, then how come you’re still trapped in that debt door.

There are several reasons why people are in debt, and most of it are because they chose to be in debt. If you are in debt, there is simply no reason to blame anyone or anything because it was your choice. You shouldn’t be wondering why it seems like you’ve been working hard just to pay off your debts instead of living your life. So to avoid being in that position, here are some of the most common reasons why people get into debt.

 

“Before you become a millionaire, you must learn to think like one. You must learn how to motivate yourself to counter fear with courage. Making critical decisions about your career, business, investments, and other resources conjures up fear, fear is the part of the process of becoming financially successful.”  Thomas J. Stanley

POOR MONEY MANAGEMENT

People think that budgeting is only for those who are living from paycheck to paycheck. Having a certain weekly or monthly budget either for yourself or for your family is extremely essential. Simply because by allowing a certain amount of money to a particular matter like paying for the bills and groceries, will help you keep track on how much you’re actually spending.

Without one, there are chances that you actually wouldn’t know where your money is going, there also might be unnecessary spending and you wouldn’t event notice. There is simply no harm in budgeting, it is all for your own good, you will be surprised how amazing it will be for you since it will be such a great help when it comes to managing your money. Once you know how to manage your money well by budgeting, there will be fewer chances for you to get into debt since you are living within your means.

COMPARING LIVES

This has got to be one of the most common reasons why people get into debt. Nowadays, it seems like being better than everyone else is the key to happiness. Social media has totally made sure of that, because people seem to be spending money on unnecessary things, just to impress other people who would do the same thing. There is a big chance that people would end up using credit cards just to buy particular things, and that is one of the major causes of debts. Spending money even before you earn it will never get you anywhere.

GAMBLING


Another major reason for people getting into debt is because they’re into gambling. It may be all fun and games, which is totally for pure entertainment purposes only, but these are like drugs. People actually get extremely addicted to this that they wouldn’t think twice about getting a loan or borrowing money from a person, just to be able to play.

Most people wouldn’t really admit that they’re actually addicted, there are some who would say that it’s only for fun, or that there is a big chance that they will become millionaires. Unfortunately, these people sometimes ruin their lives as well as their families lives because they will be into a deep debt that they wouldn’t be able to pay on their lifetime.

“Debt is a trap, especially student debt, which is enormous, far larger than credit card debt. It’s a trap for the rest of your life because the laws are designed so that you can’t get out of it. If a business, say, gets in too much debt, it can declare bankruptcy, but individuals can almost never be relieved of student debt through bankruptcy.” Noam Chomsky

LACK OF FINANCIAL KNOWLEDGE

Finally, the lack of financial knowledge could actually put people into debts they never really wanted to be part of in the first place. These are the people who tend to invest money on things that they have actually no idea about, like getting into business that they have no experience in, and it will then lead to bankruptcy since they don’t exactly know what they’re doing. Another cause of financial knowledge is the abuse of credit cards, people think that these are cards that would help you get everything you want, and then pay for it later, but then the high interests kills them at the end.

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