TOP CAUSES OF PERSONAL DEBT
Below is a list of the top ten causes of personal
debt. If you have excessive debt, we invite you to
free debt relief quote. We will help you determine
what the best course of action for eliminating your debt
1. Less income coming in while expenses go unchanged. It
is very hard to
reduce spending habits for basic goods,
like food, when there is less income coming in for the
household. The quicker you can regulate your
expenditures, the less likely you will fall into debt.
2. Failed marriages. Your financial obligation to
joint debt incurred during marriage do not
disappear. Learn more about
divorce and your debts.
Managing your money poorly. One of the smartest things
you can to do to ensure that you minimize spending, and
maximize savings, is to develop a plan for spending that
you stick to every month. You should write down all of
your expenses and your income and determine what you can
spend on miscellaneous items and what you can expect to
save. When looking to reduce debt, it is important that
stop using credit cards.
4. Not working enough. If you are not making enough money
to pay your bills and expenses, then you need to either
find a new job or get a second or third job.
5. Gambling. Placing bets on sporting games or going to
casinos to gamble is very addictive. In fact, gambling is
one of America's biggest obsessions.
6. Medical costs. There a few reasons as to why people
are falling into debt as a result of unpaid medical
expenses. Periods of time not being insured, lapsed
health insurance policies and the over-all high cost of
health insurance that is often not affordable for some
7. Not having any money in savings. It is wise to always
have some emergency money put aside for unforeseen
expenses, i.e. illness, car repairs, divorce, etc.. A
rule of thumb is to try and save 4 - 6 months worth of
living expenses. You can invest your money in CDs, bonds
or a high yield savings account. Doing so will allow your
money to grow.
8. Not discussing your finances with your family.
Establish goals. Talk about what kind of
spending habits are expected. Map out a
financial strategy that
will help you detail your monthly finances.
Being honest with your spouse is very important. Know all
credit card accounts and what the activity is for each.
9. Spending the money you have saved in anticipation of
receiving money from a job bonus, inheritance, etc..
Unfortunately, tomorrow's money is not always a sure
10. Not understanding the
concept of money, i.e.
budgeting, etc.. If you fall into this category, it would
be wise to buy some books, visit some websites or take
some classes about personal finances. Getting educated
now will help you avoid financial disasters!
One of the first things to help regain your financial
well being is to develop a
budget. This will help you better manage your money.
Are you behind on your mortgage payments? Are you
worried about going into foreclosure? We offer
advice on how to prevent foreclosure.