Even if you are not in debt, you probably know someone who is, don’t you? Well, believe it or not, the debts are easy to obtain. But the thing is, it is hard to get out.
Here are some of the main reasons why people get indebted with difficulty – some of these reasons might shock you!
1. Obsessions
People are excited about the small purchases they simply cannot afford. Shoes, clothes, collectibles – these things are usually expensive, and most of the time, they do not increase in value no matter how much you care!
2. Dream Car
Of course, driving a $ 70,000 worth car would look and feel good, but many people who buy luxury cars cannot afford it. Do not get a “broken car” by financing it and yet you cannot afford it!
The 3rd glory of the gadget. We all know that buying the latest gadget is fun, cool, and entertaining. But charging gadgets that will be obsolete in a few years is not smart. No matter how you look at it, you should only buy new gadgets if you can afford it.
4. Save
Hundreds of people are accountable to their friends and family each year. But sometimes, instead of winning the loyalty of a friend, you are probably busy with a lot of debts.
5. Game
You do not have to live near Las Vegas to play. Slot machines, lottery tickets, and even a ruble-ruble ticket can really affect your monthly income. If you play regularly, you probably lose a lot of money.
6. Rental Objects
If you can not afford to buy a new TV, sofa, or desk, why is it logical to rent these items? The bottom line is that renting is never worth it – in any way. Save money until you can buy the items that you want.
7. Credit Cards
This may not be a big surprise, but Canadians now have more credit card debt than ever before. The rule for this is simple: if you can not afford something, then do not buy it!
US bankruptcy records show that half of those who declare bankruptcy for debt has suffered a critical illness. This should not be too shocking if you have experienced a health crisis or know someone who has – with or without insurance. Insurance can reduce the benefit, but you end up paying a substantial amount even with insurance coverage.
If you, or someone you know, have a lot of debts, there are ways to get out of it quickly. The best way to do this is to apply for a personal loan to consolidate the debt. If you have bad credit, secured loans from private lenders, like auto title loans, can also be used to consolidate your debts.