Debt. It’s the four-letter word which drives such fear into us we do everything possible not to wind up in a financial quagmire.
Sometimes it happens because we are silly, other times through no real fault of our own. It makes no sense to judge others since you do not know their situation because one bad break or circumstance can be the difference between hitting your zenith or zero.
Below are some common factors that can send people spiralling financially:
1. Impulse shopping: If you are not careful, constantly shopping because of boredom can rack up thousands of dollars and put you in a deep hole.
2. Not budgeting: It is not advisable to shop without a list and a budget.
3. A costly health situation: Especially if you have no health insurance and everything is out of pocket.
4 A wedding or divorce: Starting a marriage in debt is no way to build a solid foundation. If you cannot afford a big show stopper, do a private ceremony. Love does not cost a thing.
5. Bailing someone out of jail: And they run off and leave you with the fees to pay.
6. Living above your means: This means earning $20,000 monthly and spending $23,000 whether it be on rent, food or otherwise.
6. Student loans: This is a huge contributor across the world where the emphasis on education is so great that many find themselves in serious debt before even getting their first job.
7. Borrowing: Compound interest ain’t no joke, fam.
8. Trying to keep up with the Joneses. The Joneses may very well be in debt themselves, why should you spend on a lifestyle outside your budget?
9. Irresponsible credit card use: It’s not ‘free’ money. You may not pay for it now but down the road those swipes add up.
10. Gambling: It’s a highway straight to debtors’ prison.