How People Fall into Debt

Debt is currently among the most challenging aspects of the society with disastrous consequences, including stress and relationship turmoil. The existing financial demands necessitate that one is careful in spending to avoid getting into debts that may be difficult to pay off. There are distinct cases that contribute to an individual accruing debt. People can go into debt if they encounter sudden job loss that limits them from meeting their obligations. Others struggle with personal responsibility and financial discipline that causes them to overspend (Pandey 99). With sufficient understanding of the economic errors that drive one to debt, it is possible to develop techniques to avoid the same. This paper provides an in-depth discussion of the things that lead to individuals being in debt.

One of the primary causes of debt is finance mismanagement (Garman and Forgue 106). Most people operate without a budget of how they would use the money they acquire and hence incapable of tracking expenses. Finance management requires that individuals comprehend and analyze both their income and the expenses and balance the same. By having a write up on how money has been utilized in various activities, one can know where there is unnecessary spending and thus correct it to guard against debt. As a result, it is critical that one can control their finances.            

Another contributor of debt is the habit of overspending (Ryan 236). People buy things that they do not need and cannot afford as per their earnings…

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