True Causes of Debt That You Should Be Aware Of
Think you’re safe from getting stuck with debt problems? Better not be too confident. Everyone should be aware of his payment obligations and take these obligations seriously at all times. No one is exempted. Here are the major causes of debt that can happen to anyone, even to you, if you’re not careful: Spending more than your income permits. Before you say you’re not guilty of this, take out your pen and paper. Jot down each and every single thing that you spend for each month. Include your utility bills, transportation expenses, groceries, and your personal expenses. Calculate the total cost and subtract it from your monthly salary. Now, are you spending more than what your income allows? You could be surprised to know that you are. Not setting aside for your savings. Do you have enough savings that can last you at least 6 months in case you lost your job? Surprisingly, only a few people save up for emergencies and although some people have savings, it is still not enough to support them for more than a month. People should be setting aside at least a third of their earnings to their savings account each month.
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