Common Reasons People Go Into Debt

Bankruptcy Lawyer

If you are like many people, you may be struggling to find a permanent solution to your debt struggles. Money problems are issues that many people have, and you are not alone. Debt struggles are more common than you think, and they can happen through a number of causes. 

What are common causes of debt? 

Debt is a taboo topic for many people. There is a lot of shame associated with the subject, as many people are told that debt is their fault. However, in many cases debt can be brought on by factors outside of a person’s control. There are many variables that can affect a person’s financial situation. Even the people who practice responsible financial habits and choices can fall victim to a debt problem. Some of the common causes of debt that financial advisor may experience include the following: 

Medical Bills

A sudden medical emergency can result in a bill that most people cannot afford. Even with a good health insurance plan, certain treatments are still unaffordable for many. From ambulance trips, hospital status, or a costly surgical procedure, medical debt is a common cause of bankruptcy. 

Job Loss

Losing a job suddenly can dramatically change a person’s life, and when you can no longer depend on your income to pay off your debts, you may have to turn to other options. Unfortunately, unemployment is sometimes out of a person’s control. If a company decides to restructure or conduct layoffs, it can destabilize a worker’s financial situation. The worker may not make enough money and as a result, have little to no savings to rely on. 

Poor Budgeting

For some people who struggle with debt, losing track of spending is the main factor, Failing to keep a proper budget is a common problem that many people have regardless of income or level of financial literacy. It can be easy to make simple mistakes that cause someone to fall behind on their budget and lose control. 

There are many options available which can allow you to regain control of your finances and begin building your wealth. If you need assistance finding the right solutions to help you manage your debt, assistance provided by a qualified credit lawyer like Carolyn Secor, P.A. can help you understand your options and make the best decision for you. Determining which options are most suited for your particular and unique situation is not always simple, but with her help you can find a solution and a long-term plan to help you achieve financial freedom. Schedule a call with a trusted lawyer now to learn more.