YOU’RE NOT ALONE.
With the ease of obtaining credit cards and loans, many people are spending money they don’t have and racking up large debts with speed. In fact, recent statistics show that approximately 80% of Americans are in debt and the amount of debt is also on the rise.
Unfortunately, debt can create a number of mental health challenges, potentially creating stress, anxiety or depression. The negative side effects of debt can also include relationship breakdowns, bankruptcy and eviction. It can be hugely important to get out of debt quickly & learn how to avoid unmanageable debt in the future.
So, let’s start by looking at some of the reasons why people get into debt in the first place.
Debts can accumulate for a number of reasons, including unexpected expenses, underemployment or reduced income, divorce (and other big life changes), or lack of savings. However, a very common factor which leads to debt is simply bad spending habits! We live in a “more, more, more” society and it can be a costly exercise keeping up with everyone else. It can feel essential to buy the latest iPhone, wear the latest fashion, upgrade cars and homes, attend all the social events and go on epic holidays.
As a result, many people feel compelled to spend money they don’t yet have. Or, they don’t budget properly and simply don’t realize they’ve overspent until it’s too late.
A few of the reasons why people tend to stay in debt include: