Posted in Business

Six surprising reasons why people are in debt

Besides love, duty is a four-letter word that destroys and creates chaos for each person. Like love, so be it. But, unlike love, we can control the debt and avoid it. The question is, why do people take loans, like the cash advance? Of course, they have money problems. What are the issues with money? These include debt or unexpected, necessary, emergency, and forgotten expense. But there are other surprising reasons when you visit here, such as:

  1. Divorce.

Legal fees and advice alone are a large part of the cost of a divorce, and when child support is included, the problem is even more significant. Therefore, one of the consequences of this family problem is to have enough money to survive every day. Sometimes, also if you have to work twice, divorcing once in a while has money problems; So they take a loan and get into debt.

  1. Losing a job is one of the common problems and the reasons why people get into debt.

Some people have been able to save and prepare for this opportunity, but finding another takes time and also expends savings and other unforeseen circumstances. Thus, the unemployed use the loans to have money until the next job.

  1. Credit card.

This is a surprising reason for those who believe they do not take loans when they use their credit cards. They must deceive themselves, since reading a credit card is in itself a must. The problem is even worse when cardholders use it as if there were no tomorrow. 

  1. Low income compared to inflation. 

People apply for loans because their income is no longer enough. The problem with the economy is that increase will grow, but revenues will not grow at the same percentage level as inflation. Therefore, employees find that their income is no longer sufficient to buy ordinary products and pay monthly utility bills since they also increased. 

  1. Low income compared to the additional mouth for feeding.

In some situations, the birth of another child or the placement of another relative to live in a family is another financial burden. Therefore, those who earn their living from time to time give loans to buy additional items for extra food. 

  1. Impulse buying.

Some people are easily attracted by advertising and who want to try new products and services, even if they do not need these products or if they do not have extra money to buy such things; Therefore, they request a loan and, without knowing it, they get into debt. There is nothing wrong with that, But the logical thing is to plan these expenses or walk around the mall and find out if there are ongoing tests and tests in the shopping centers.