Why Do We Get In Debt?

Friday, September 6, 2013

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Many of us are in debt to student loan companies, house mortgages, car loan companies and credit card companies. We keep digging a hole expecting it to miraculously fill back up in the future. Here are some of the reasons I think we may go into debt:
  • Better Ourselves: Education and material goods may make our situation appear better or seem like it would eventually make our situation better.
  • We Deserve It: You may feel like you have entitlement to put something on the credit card and feel like you deserve to give yourself a treat.
  • Want It Now: Sometimes we don't want to wait to save money and it seems just as easy to swipe a credit card to get that instant gratification.
  • It's an Emergency: If we don't have cash reserves for an emergency, sometimes the only way out may seem to use a credit card or to get some sort of cash advancement.
  • Loss of Job: If you don't have any reserves and you've lost your job, oftentimes, people will start resorting to loans and credit cards to help them out of a financial situation.
There's many reasons why we go into debt and it may seem like tomorrow will be fine even if you get an extra loan or use that credit card, however, in the long term that debt may cost you more heart ache and pain. The best thing to do is to avoid debt at all costs and to look for other solutions to your problems, wants and needs whether it's to work out a payment plan with a hospital, work a second job, or to just go without that brand new computer.


Further Reading:
Top Ten Reasons We're in Debt
Top Most Common Causes of Debt
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