There are millions of Americans behind on their bills. We’ve compiled some of the top causes of debt that is common.
- Reduced Income – With the slow economy, a lot of people have been working less hours or even been forced to take pay cuts. However, these same people sometimes are unable to control their expenses, which results in less cushion or sometimes not even enough income to cover expenses. Some expenses simply not be cut such as loan payments and rents.
- Divorce – In most marriages, one spouse tends to handle the finances, leaving the other spouse uninformed and inexperience in dealing with finances when they end up leaving on their end.
- Bad Financial Management – Another common reason for being in debt is just bad management. Whether it is spending more than you bring in, splurging on unnecessary purchases or just not doing a good job of estimating expenses, there are a number of different ways not being fiscally responsible that can lead to debt.
- Gambling – Not much to add here besides that gambling has and will always be an issue. One does not need to be addicted to gambling to be in debt. One bad bet on a NFL football game can set you back. Typically, when you lose in gambling, you feel the need to earn the money back and end up losing even more money. Don’t gamble anymore than you can afford.
- Medical Expenses – There are millions of uninsured Americans because of unemployment or simply cannot afford healthcare. When an unexpected medical emergency comes up, you end up being set back a lot of money as healthcare is not cheap when factoring in hospital, medicine and doctor visits.