Reasons people stay in debt Debts are almost always inevitable. For most people, it’s almost impossible to own a home, a car, pay bills or even get an education without having a credit card. Unfortunately, many people are up to their necks in debt, and a lot of them are doing nothing towards repayment. Staying in debt has several reasons and learning about them might help you dodge them.
Living beyond your means It’s quite self-explanatory, but in brief, it’s when you spend more than you’re bringing in. If what you are earning cannot easily cater to your house expenses, vehicle repayments, insurance, or other fixed costs, then you cannot afford that kind of standard of living. It is even worse if you tend to use credit cards to pay for what your income cannot support. What happens is that debts start to accumulate and interest month after month and before you realize it, you’re in
debt with no way to escape.
Having no budgeting plan This means that most people are unable to track their spending behaviors plan for the future. Without a budget and with several credit cards at your disposal, it is easy to spend your money wildly and end up depending on credit as you wait for the next pay. This repeated cycle leads to failed repayments which as a result increases the outstanding debts.
Job loss or reduced income Having a good job gives you the assurance of knowing that your income is able to cover the repayments. If you suddenly lose the job, it becomes impossible to make your repayments which may also attract extra interest and penalty fees. Even if you end up getting a new job, it is possible that your credit card debts will have climbed to levels that you may no longer bear. Similarly, a pay-cut or reduced income may also make you lag behind on your repayments leading to accrued debts.
Unwillingness to Sacrifice If you are deep in debt and you are still fighting to maintain the same lifestyle, the risks are that you will never repay your debts and it will get worse. The inability to save for debt repayments may depend on your will to give up a few things like vacations, a big house, and an expensive car among others.
Struggling up It is human nature to want to fit into certain positions set by society and family. In an effort to fit, you may end up spending much more than what you afford. Unfortunately, the demands may keep going higher unless you can tell yourself to stop spending.
Final Take Despite the fact that it is normal for people to find themselves in debt at some point or another, not everyone ends up paying. The reasons why many people stay in debt range from honest ones to absolute selfish ones. Debt accumulates little by little and before you even know it,
you’re drowning in debt. To stay away from all of this, simply prepare yourself with a strategy that’ll keep your spending’s within reason and remember to make a few sacrifices, stay committed to your plans and simply, you’ll untie yourself from the debt cycle.